The global artificial intelligence (AI) in insurance market is projected to grow more than elevenfold by 2034 as insurers increase the use of AI across claims processing, underwriting, fraud detection and customer service.
According to Fortune Business Insights, the market is expected to rise from $13.45 billion in 2026 to $154.39 billion by 2034, registering a compound annual growth rate (CAGR) of 35.7% during the period. The market was valued at $10.36 billion in 2025.
The growth comes as insurers look to automate manual processes, improve risk assessment and manage increasing volumes of customer and claims data. AI is also being used as insurers modernise legacy systems and move towards more digital operating models.
Claims Processing Emerges as Key AI Application
Claims processing is currently one of the major areas of AI adoption in insurance. According to Fortune Business Insights, the claims processing segment accounted for the largest market share in 2025.
AI-powered systems can analyse documents, customer information and other claims data to automate parts of the claims workflow. Machine learning models can also identify unusual patterns in historical claims and behavioural data, helping insurers detect potential fraud and prioritise cases for further investigation.
Underwriting is another important area of adoption. Insurers are using machine learning and predictive analytics to analyse large datasets and support risk assessment. This can help insurers process information faster while improving the consistency of underwriting decisions.
Customer service is also becoming an important use case. Conversational AI, virtual assistants and automated systems can provide policy information, respond to routine queries and give customers updates on claims. These applications are allowing insurers to automate repetitive interactions while maintaining digital support channels.
Asia Pacific Expected to See Faster AI Growth
North America remained the largest regional market in 2025, accounting for 39.96% of the global AI in the insurance market. The region’s position has been supported by the adoption of digital insurance technologies, advanced analytics and AI-based tools.
Asia Pacific, however, is expected to record faster growth. Fortune Business Insights estimates that the regional market was valued at $2.80 billion in 2025 and is projected to expand at a CAGR of 42.2% during the forecast period.
The research also identifies cloud deployment as an important part of the market’s expansion. Cloud-based AI systems can provide insurers with scalable computing and analytics capabilities as they modernise their technology infrastructure.
As AI adoption increases, insurers are expected to expand its use beyond individual automation tools. They are to integrate the technology across core insurance functions. However, wider deployment will also require attention to data governance, privacy, regulatory compliance and oversight of AI-supported decisions.
With the market projected to reach $154.39 billion by 2034, the research indicates that AI is becoming an increasingly significant technology layer across the insurance value chain.
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