The 2025 Insurance Industry Report highlights a year of innovation and adaptation driven by advancements in AI, IoT, and blockchain. The sector has adopted innovative business structures and disruptive technology in the face of economic and regulatory obstacles.
This report provides a comprehensive picture of the forces influencing the future of insurance by providing concise insights into important trends, investment activity, workforce demographics, and innovation.
Executive Summary: Insurance Industry Outlook 2025
- Industry Growth Overview: Due to changing consumer expectations and market obstacles, the insurance sector saw a yearly decline of 0.39% as per our database. However, the global insurance market is expected to grow to USD 10.29 trillion by 2033, reflecting a compound annual growth rate (CAGR) of 7.2% between 2024 and 2033.
- Manpower & Employment Growth: The industry employs 16.6 million employees and added over 839 000 new workers in the previous year, demonstrating its status as a significant employer on a global scale.
- Patents & Grants: With 39 110+ patents submitted by 7330+ applicants and an annual patent growth rate of 8.48%, the industry witnessed strong innovation. 8630 grants were also obtained to finance more research and development.
- Global Footprint: The United States, United Kingdom, India, Canada, and Australia emerged as the top country hubs, with cities like New York, London, Sydney, Melbourne, and Mumbai leading regional advancements.
- Investment Landscape: The industry attracted investment, with 50 650+ funding rounds and an average investment value of USD 58.4 million per round. Over 27600 investors backed 17 540+ companies.
- Top Investors: Leading investors like SoftBank, Tencent, Goldman Sachs, and more invested around USD 39.2 billion in the industry.
- Startup Ecosystem: Five innovative startups—BlockRisk (insurance risk mitigation), Alpha Millennia Technology (IoT insurance applications), Driverly (AI-powered car insurance), Renova (automated insurance portfolio management), and Bimaplan (multiple insurance policies platform)—showcase the sector’s global reach and entrepreneurial spirit.
Methodology: How we created this Insurance Report
This report is based on proprietary data from our AI-powered StartUs Insights Discovery Platform, which tracks 25 million global companies, 20K+ technologies and trends as well as 150M patents, news articles, and market reports. This data includes detailed firmographic insights into approximately 5 million startups, scaleups, and tech companies. Leveraging this exhaustive database, we provide actionable insights for startup scouting, trend discovery, and technology landscaping.
For this report, we focused on the evolution of the insurance sector over the past 5 years, utilizing our platform’s trend intelligence feature. Key data points analyzed include:
- Total Companies working in the sector
- News Coverage and Annual Growth
- Market Maturity and Patents
- Global Search Volume & Growth
- Funding Activity and Top Countries
- Subtrends within the insurance sector
Our data is refreshed regularly, enabling trend comparisons for deeper insights into their relative impact and importance.
Additionally, we reviewed trusted external resources to supplement our findings with broader market data and predictions, ensuring a reliable and comprehensive overview of the insurance market.
What Data is used to create this Insurance Market Report?
Based on data provided by the StartUs Insights Discovery Platform, we observe that the insurance market stands out in the following categories relative to the 20K+ technologies and trends we track.
These categories provide a comprehensive overview of the market’s key metrics and inform the future direction of the market.
- News Coverage & Publications: With over 108 320 publications in the past year, the insurance industry has garnered a lot of attention, underscoring its importance and media prominence.
- Funding Rounds: Our database contains information on over 50 650 investment rounds, which shows the sector’s strong financial activity.
- Manpower: With over 839 000 new hires in the last year alone, the industry now employs a sizable workforce of 16.6 million people.
- Patents: The insurance sector’s dedication to innovation and intellectual property development is highlighted by its more than 39 110 patents.
- Grants: The sector has benefited from 8630 grants, further fueling research and development initiatives.
- Yearly Global Search Growth: Over the past year, the volume of global searches showed 8.08% growth. This indicates a boom in interest in the sector.
Explore the Data-driven Insurance Market Report for 2025
The heatmap uses information from more than 173 110 companies in the database and 1010+ startups to give a comprehensive overview of the insurance sector.
The global insurance market in 2024 was valued at around USD 7.79 trillion, with expectations to grow to USD 10.29 trillion by 2033, reflecting a CAGR of 7.2% between 2024 and 2033.
Credit: Openkoda
As seen by the 39 100+ patents and 8630+ grants, the industry has demonstrated resilience despite a -0.39% growth in the last year, supported by substantial innovation.
Despite growth hurdles, the industry has maintained talent acquisition, as evidenced by its strong 839 000+ employee growth in the last year and its 16.6 million global workforce.
Major city hubs like New York City, London, Sydney, Melbourne, and Mumbai are pushing localized improvements, while the top five country hubs— the United States, the United Kingdom, India, Canada, and Australia—underline the sector’s worldwide reach.
Moreover, as per CoinLaw, insurance contributes approximately 2.5% to the UK’s GDP, underscoring its importance to the national economy.
Credit: CoinLaw
A Snapshot of the Global Insurance Market
With an annual growth rate of -0.39%, the sector is vibrant and busy despite a minor contraction. However, according to The Business Research Company, the insurance market size will grow from USD 8307.01 billion in 2025 to USD 10832.92 billion in 2029 at a CAGR of 6.9%.
Credit: The Business Research Company
With more than 1010 startups driving innovation in the sector, innovation is evident. Our database shows data on 10 770+ mergers and acquisitions (M&A) demonstrating continuous consolidation efforts and strategic partnerships, while 4670+ are early-stage startups, indicating a strong pipeline of entrepreneurial activity.
As seen by the 39 110+ patents submitted by 7330+ applicants, which demonstrate a strong emphasis on intellectual property, innovation remains a fundamental component of the sector. The industry’s dedication to technological breakthroughs is further demonstrated by its 8.48% annual patent growth rate.
However, according to Life Insurance International, the global insurance industry experienced a 33% decline in patent filings in Q3 2024 compared with the previous quarter.
Credit: GlobalData Patent Analytics
With 21 780+ patents, the United States is the largest patent issuer, followed by China, which has contributed 6940+ patents. It solidifies their standing as leaders in global innovation.
Explore the Funding Landscape of the Insurance Market
The industry’s capacity to draw substantial capital is demonstrated by USD 58.4 million average investment value per round. With a strong foundation of over 27 600 investors, the industry has broad support from a variety of funding sources.
The industry has concluded more than 50 650 fundraising rounds so far, demonstrating its dynamic character and steady stream of investment.
More than 17 540 startups received investments from these rounds, highlighting the wide-ranging impact of funding initiatives across different ecosystem participants.
Who is Investing in the Insurance Market?
The top investors have contributed over USD 39 billion to the industry. Here are the key investors with their contributions:
- SoftBank invested in 43 companies, contributing USD 6.7 billion.
- Tencent invested in 41 companies, contributing USD 4.9 billion.
- Berkshire Hathaway invested in 16 companies, contributing USD 4.8 billion.
- Grab invested in 4 companies, contributing USD 3.7 billion.
- Goldman Sachs invested in 51 companies, contributing USD 3.6 billion. InsuranceDekho secured a USD 150 million Series A funding round led by Goldman Sachs Asset Management and TVS Capital Funds.
- Warburg Pincus invested in 32 companies, contributing USD 3.3 billion.
- Carlyle Group invested in 22 companies, contributing USD 3.3 billion.
- Blackstone invested in 21 companies, contributing USD 3.2 billion. It invested USD 500 million, in collaboration with Fairfax Financial Holdings, in the launch of Ki, a digital-first insurance platform.
- Onex invested in 6 companies, contributing USD 2.9 billion.
- Fairfax Financial Holdings invested in 9 companies, contributing USD 2.8 billion.
Top Insurance Industry Innovations & Trends
Discover the emerging trends in the insurance market along with their firmographic details:
- Insurance AI: With more than 70 startups using AI solutions to improve risk management, customer experience, and operational efficiency, AI is transforming the sector. Strong demand for AI-driven innovation is reflected in the trend, which supports a workforce of 4600+ employees, including 520+ new hires in the past year. AI is becoming more and more popular as a vital enabler in the insurance industry, with a 32.56% annual growth rate.
According to Market Research Future, the AI in Insurance Market size is projected to grow from USD 11.33 billion in 2024 to USD 49.3 billion by 2032, exhibiting a CAGR of 32.30% during the forecast period 2024 – 2032.
Credit: Market Research Future
- Insurance IoT: Despite its significant potential, the internet of things (IoT) is currently on the decline, with an annual growth rate of -9.42%. With 700+ employees, including 40+ new hires last year, there are more than 10 startups that specialize in IoT solutions for the industry. IoT is still a specialized field with the potential to overcome adoption and scalability issues, despite the negative growth rate.
Mordor Intelligence reports that the IoT Insurance Market size is estimated at USD 53.95 billion in 2025, and is expected to reach USD 83.81 billion by 2030, at a CAGR of 9.21% during the forecast period (2025-2030).
Credit: Mordor Intelligence
- Microinsurance: With more than 380 startups addressing underserved markets and offering coverage to vulnerable groups, microinsurance is starting to emerge as a significant growth engine. This pattern supports a sizable workforce of over 293 000 workers, which has been strengthened by over 13 700 new hires in the past 12 months. Microinsurance’s 14.34% yearly growth rate demonstrates the sector’s dedication to diversity and creative insurance strategies.
IMARC Group expects the microinsurance market to reach USD 144.4 billion by 2033, exhibiting a CAGR of 4.81% during 2025-2033.
5 Top Examples from 1000+ Innovative Insurance Startups
The five innovative startups showcased below are picked based on data including the trend they operate within and their relevance, founding year, funding status, and more. Book a demo to find promising startups, emerging trends, or industry data specific to your company’s needs and objectives.
BlockRisk mitigates Insurance Risk
US-based startup BlockRisk advances the insurance sector with its blockchain-powered risk reduction products. The startup’s platform utilises decentralized ledger technology to offer safe, open, and instantaneous insights on risk exposures.
Its product AfterLife enables users to claim unclaimed life insurance. It benefits through automated blockchain notifications to offer transparency, financial protection, and efficiency. It addresses common issues like lost policies or outdated contact details, ensuring beneficiaries receive their rightful assets promptly.
The other product, Hydro is a blockchain-powered warranty solution for condominium communities, which offers peer-to-peer coverage against water damage. It enables shared deductibles and integrates smart IoT devices for early leak detection. Further, it provides customized plans for financial security and stronger communities.
BlockRisk prioritises fraud detection, safe data sharing, and cooperative risk management to maintain trust between insurers, reinsurers, and policyholders.
Alpha Millennia Technology offers IoT Insurance Applications
Singapore-based startup Alpha Millennia Technology enhances insurers’ way of handling risks by incorporating IoT technology into insurance applications. The startup’s platform allows real-time data collection and analysis by connecting insurance systems to IoT devices. It includes wearable health trackers, telematics systems, and smart home sensors.
The startup’s solutions, such as AlphaInsurance, offer digital insurance for SMEs and products like telematics and environmental, social, and governance (ESG) insurance. AlphaFinancing, provides microlending for SMEs and cooperatives, and AlphaAnalytics includes data-driven insights for insurance, finance, and IoT.
These solutions enable insurers to use this data to improve proactive risk management. It also allows the creation of customized policies and the use of dynamic pricing models. The startup’s products are beneficial for property, health, and car insurance, enabling insurers to increase client satisfaction and underwriting accuracy.
Driverly enables AI-powered Car Insurance
UK-based startup Driverly advances auto insurance with its AI-powered platform. It provides individualized insurance plans that account for each driver’s unique risk profile. It is done by examining their driving behavior in real time.
The startup’s solution encourages safe driving and offers a more equitable and open approach to auto insurance through customized pricing. It enables users to access policy data, track driving stats, and handle claims via the platform’s user-friendly mobile app.
Driverly’s AI algorithms ensure dynamic pricing and ongoing monitoring, which allows drivers to save money and promote safer driving practices.
Renova Automated Insurance Portfolio Management
Mexican startup Renova combines automation and smart analytics to modernize insurance portfolio management. The software aids insurers in increasing operational efficiency by streamlining complicated procedures, including policy tracking, claims processing, and renewal management.
It enables insurers to make data-driven decisions and provide customized solutions with its AI-powered system. This offers comprehensive insights into consumer behavior and portfolio performance.
The platform provides insurers the ability to enhance customer satisfaction and service delivery by lowering administrative costs and allocating resources efficiently.
Bimaplan offers a Multiple Insurance Policies Platform
Indian startup Bimaplan lowers the cost and increases the accessibility to insurance for marginalized groups. The portal offers a large selection of insurance products in the general, life, and health categories. This makes it easy for users to compare, buy, and administer policies.
Bimaplan makes insurance a practical choice for people by providing bite-sized rates and digital tools. The emphasis is on inclusivity. It promotes financial stability and resilience for people and families by tackling obstacles. This includes accessibility and pricing, along with increasing insurance penetration.
Gain Comprehensive Insights into Insurance Industry Trends, Startups, and Technologies
In 2025, the insurance industry demonstrates resilience through innovation, adopting AI, IoT, and blockchain to meet evolving demands. Key trends like microinsurance and personalized policies highlight growth opportunities. As the sector adapts to challenges, its focus on technology and inclusivity positions it for a dynamic and sustainable future.
Get in touch to explore 1000+ startups and scaleups, as well as all market trends impacting insurance companies.
