How big is the digital insurance platform market | Trends 2031

Q: What is the projected value of the digital insurance platform market by 2031?

The digital insurance platform market is forecast to reach USD 23.3 billion by 2031.

Q: What is the projected growth rate of the digital insurance platform market?

Digital insurance platform market is projected to grow at a CAGR of 16.2%.

Q: What is the major barrier in the adoption of digital insurance platform?

Legacy system integration and regulatory compliance remain key challenges for large-scale transformation.

Q: What factors are fueling the growth of Digital Insurance Platform Market?

Rising digital transformation initiatives across insurers and AI-based underwriting and claims processing are the key factors fueling Digital Insurance Platform Market growth.

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Code: MTA5070

Publication Date: Jul 2025

How Big Is the Digital Insurance Platform Market?

According to 6Wresearch internal database and industry insights, the Global Digital Insurance Platform Market was valued at USD 8.9 billion in 2024 and is expected to reach USD 23.3 billion by 2031, recording a CAGR of 16.2% during the forecast period.

This massive growth is driven by rising digital transformation initiatives across insurers, rising customer expectations for personalized policy offerings, API-led ecosystems, and AI-based underwriting and claims processing.

Growth Drivers of the Digital Insurance Platform Market

Growing demand for omnichannel customer experiences in insurance
Regulatory push for digital policy issuance, KYC, and real-time compliance
Rapid adoption of cloud-based core insurance platforms
Integration of AI/ML in fraud detection and pricing optimization
Growth in usage-based, on-demand, and embedded insurance models
InsurTech collaborations and open API ecosystems accelerating innovation

Digital Insurance Platform Market Trends

Digital Insurance Platform Market is witnessing a transition toward composable insurance architectures and microservices-based deployment. Usage-based insurance (UBI), AI-driven chatbots, blockchain for claims validation, and no-code/low-code policy configuration is gaining momentum. The rise of embedded insurance offerings within e-commerce, travel, and mobility platforms is also reshaping product distribution channels and premium generation dynamics.

Emerging Developments in Digital Insurance Platform Market

Digital insurance platforms are evolving into full-stack solutions with modular plug-ins for underwriting, billing, and analytics. Insurers are increasingly deploying predictive analytics to assess customer lifetime value and retention. Real-time policy binding, parametric insurance models, and voice-enabled policy servicing are among the recent advancements. Strategic investments in personalization, ESG-based risk scoring, and IoT integration are also shaping the future digital landscape of the Digital Insurance Platform Market.