In-Depth Analysis of Commercial Applications of AI InsurTech and Investment Opportunities

Based on the latest data and industry information I have collected, here is an in-depth analysis report on the commercial application prospects of AI technology in the insurance industry and investment opportunities in the insurtech track.

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The global insurtech market is in a period of rapid growth. According to data from market research institutions, the global insurtech market size reached

in 2024, is projected to grow to in 2025, and is expected to reach by 2033, with a compound annual growth rate (CAGR) as high as [1]. This astonishing growth rate reflects the accelerating profound transformation of the traditional insurance industry driven by AI technology.

The Chinese insurtech market also shows strong development momentum. As of November 2025, the premium scale of China’s commercial health insurance reached

, with a year-on-year growth of 2.39%, and is expected to exceed the trillion-yuan mark for the first time in the full year[2]. Among them, medical insurance accounts for a dominant 46% share with about 455 billion yuan in premiums, and its growth rate is close to 7%, becoming the main engine of industry growth. The growth rate of health insurance business of property insurance companies reached 11.4%, while that of life insurance companies faced a negative growth of 0.05%, showing structural differentiation characteristics.

AI technology is reshaping the application and underwriting process, significantly improving efficiency and user experience. The case of US insurtech company Lemonade is representative: its AI robot Maya can complete the insurance application within

, and conduct initial risk control by collecting thousands of data points (including user typing pauses, device information, etc.)[3]. China’s Droplet Insurance launched KEYI.AI, the industry’s first AI underwriting expert, which achieves , reducing the average processing time for complex health insurance underwriting by , with an accuracy rate of [4].

Baizhun Niu launched the “Full-Stack AI Ecosystem for Insurance” in January 2026, representing the latest progress of domestic insurance AI applications. This ecosystem realizes the deep integration of underlying computing power, core computing and insurance scenarios: the base layer ensures independent and controllable computing power and data, the model layer accumulates professional knowledge graphs such as insurance actuarial science, risk control and compliance, and the application layer accurately matches the full-process needs of application, underwriting, claims, etc.[5]. The innovation of this technical architecture lies in the realization of “full-stack” AI capability integration, rather than single-point technological breakthroughs.

Claims are the core pain point of insurance services, and also the field where AI application value is most significant. Lemonade’s AI claims robot Jim can describe the loss process through a mobile phone lens and upload videos, realize image and voice analysis, verify policy terms and detect fraud.

, with the fastest record reaching [3]. This efficiency revolution has completely changed the pain points of long cycles and poor experience in traditional insurance claims.

Ping An Property & Casualty launched the “Ping An Typhoon Risk Map” and “Ping An Typhoon Catastrophe Model”, creating the industry’s first Ping An Emergency Material Warehouse. Based on historical typhoon data and observation data, combined with various advanced AI model algorithms, it achieves

, providing a basis for scientific decision-making in underwriting[6]. Sunshine Property & Casualty innovatively launched the “Claims Service Robot” nationwide in October 2025, realizing and to automatically trigger the customer’s exclusive claims service group[6].

AI is reconstructing insurance marketing and customer service models. In the “AIcare” technology stack built by Qingsong Health, the “Galaxy AI Marketing Platform” uses large model technology to conduct multi-dimensional profiling of users’ health status, protection gaps and payment capabilities, realizing accurate matching between “people” and “insurance”. Calculated by annualized premiums, the clue value contributed by AI models has increased significantly from

in 2022 to in 2024[7].

Droplet Insurance’s AI medical insurance expert has reached the leading level in the industry, capable of complex conversations, auxiliary sales planning and other capabilities, and independently undertakes part of the telephone service work for medical insurance and other insurance types. In the third quarter of 2025, the

[4]. Yuanbao’s model library has expanded to , with AI-generated code accounting for nearly of the code in R&D[8].

Since 2024, large language model technology has been deeply penetrating the entire insurance value chain. KPMG’s 2025 China FinTech 50 Report shows that artificial intelligence continues to lead fintech innovation, and the proportion of technological elements of listed companies has risen from

in 2021 to in 2025[9]. The collaborative application of natural language processing and machine learning technologies promotes the value release of financial service scenarios such as intelligent investment consulting, intelligent customer service, and personalized pricing.

Quantum technology is bringing huge imagination space to the insurance industry. In the field of risk modeling and capital management, traditional actuarial models have computing power bottlenecks when dealing with extremely complex scenarios and massive data. Quantum computing is expected to break through computing power constraints and achieve exponential growth in computing power. Ping An of China has begun to research and explore the application of quantum computing in auto insurance pricing models[9]. China Pacific Insurance (CPIC) Property & Casualty has applied quantum secure storage technology to financial data circulation scenarios, adding a “security lock” to data transmission and storage processes through quantum encryption technology[9].

AI technology is promoting the transformation of insurance from “post-event compensation” to “pre-event management”. When medical, insurance, and risk control links are connected into a closed loop by AI and data, the insurance industry ushered in the largest incremental space[7]. Zhang Junjie, President of Ant Group’s Health Business Group, emphasized that the “health payment + health service” model driven by AI and data is gradually maturing, and the core battlefield of competition in the health insurance market will be that leading companies build a closed-loop ecosystem of “medical treatment, pharmaceuticals, insurance” with their resource integration capabilities[2].

Baizhun Niu’s launched “Full-Stack AI Ecosystem for Insurance” represents the latest development direction of the insurtech field. This ecosystem has the following core characteristics:

: Realize the deep integration of underlying computing power, core computing and insurance scenarios, including the base layer (independent and controllable computing power and data), model layer (professional knowledge graphs such as insurance actuarial science, risk control and compliance), and application layer (accurate matching of full-process needs of application, underwriting, claims)[5].

: Completed strategic signing with institutions such as the China Electronics Chamber of Commerce and the National Food Safety Innovation Center to jointly promote the deep integration of AI and insurance[5]. This cross-industry cooperation model helps expand the application scenarios and value boundaries of insurtech.

: Covers the entire process of application, underwriting, and claims, realizing end-to-end AI capability coverage from product design to customer service.

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In the fourth quarter of 2024, global property insurance insurtech financing dropped to

, hitting an 8-year low[1]. However, early-stage financing performed brightly: the median transaction size of insurtech early-stage transactions in 2024 reached , with a year-on-year growth of [1]. This differentiated trend indicates that investors’ preference for early-stage innovative projects has increased, while their valuation of mature projects is more prudent.

The IPO pace of insurtech enterprises has accelerated significantly in 2025: Yuanbao Technology and Shouhui Group successively listed on Nasdaq and the Hong Kong Stock Exchange in the first half of 2025; Qingsong Health listed on the Hong Kong Stock Exchange in December 2025 and rose

on its first trading day; Baige Online passed the Hong Kong Stock Exchange listing hearing[7][8]. The response of the capital market reflects the increased investor attention to new business models of insurtech.

Health insurance is the core track of insurtech investment. On the demand side, against the background of population aging, the demand for national health protection is strong, but the penetration rate of commercial health insurance is only

, far from meeting the public’s demand for medical protection[8]. In terms of policies, the National Healthcare Security Administration has stated its support for the development of commercial health insurance, accelerating the promotion of data sharing between medical insurance and commercial insurance. The emergence of AI technology has become the key to activating the trillion-yuan market.

: In the first three quarters of 2025, its revenue maintained double-digit year-on-year growth, with total revenue of in Q3, a year-on-year increase of [8]. The proportion of R&D personnel is nearly , the scale of the AI team exceeds of the total number of employees, and the model library has expanded to more than 4900 models. The company’s PE is lower than the industry average, with clear valuation repair space.

: It has been on the “Top 100 InsurTech and Service” list for five consecutive years. In Q3 2025, its total revenue was , a year-on-year increase of [4]. KEYI.AI, its AI underwriting expert, achieves an accuracy rate of 99.8%, significantly improving operational efficiency.

: In the first half of 2025, its net profit increased [8]. As China’s first internet insurance company, Zhongan has a first-mover advantage in AI applications and ecosystem construction.

Claims automation is the most mature application scenario of AI in the insurance industry with the most significant ROI. US-based Lemonade (NYSE:LMND) has more than 50% of claims fully processed automatically by AI, achieving the fastest 3-second claim payout[3]. Ping An’s “Eagle Eye System” warned a total of

in the first half of 2025, sent , and covered enterprise and individual clients[6].

: CPIC Property & Casualty Ningbo Branch launched “Jizhibao”, the country’s first exclusive insurance product designed for the commercial application of humanoid robots, opening up the “last mile” between technological innovation and market application[6].

: The strategic signing between Baizhun Niu and the National Food Safety Innovation Center shows that the innovative application scenario of AI + food safety insurance is expanding[5].

: Insurance embedded in consumption scenarios (such as e-commerce, travel, health management, etc.) has become a new growth point. The market size of embedded insurance is expected to grow in 2025[1].

Since 2024, regulatory authorities have fully implemented the “Reporting and Execution Integration” policy, which has greatly compressed the high-cost survival space of traditional insurance intermediaries[7]. Data privacy regulations are becoming increasingly strict. How to protect user privacy while using user health data for model training is a compliance red line that all insurtech enterprises must face. A report by iResearch points out that insurance companies need to establish a more complete AI ethical framework and data security mechanism[7].

The complexity and high cost of insurtech solutions and technologies constitute financial barriers. The effective use of these solutions also requires additional investment in implementation, maintenance and personnel training[1]. Traditional insurance companies have prominent problems such as outdated system architecture and insufficient innovation efficiency. If they fail to grasp the strategic opportunity period of in-depth AI technology application, they will face passive development.

Most insurtech companies are still exploring sustainable profit models. Although Lemonade has achieved technological breakthroughs, it still faces profitability challenges with volatile stock prices[3]. Investors need to pay attention to the company’s cash flow and profit path.

Company	Market	Core Advantages	Investment Highlights
Yuanbao	Nasdaq	In-depth AI integration, profit growth	H1-Q3 net profit doubled, 3.7 billion yuan cash reserve
Droplet Insurance	Private/Potential IPO	Leading AI underwriting technology	5 consecutive years in top 100, deep technological barriers
Zhongan Online	Hong Kong Stock Exchange	Well-established ecosystem construction	Net profit surged 11 times year-on-year, mature AI applications
Qingsong Health	Hong Kong Stock Exchange	Health service transformation	Digital health service revenue accounts for over 76%

The current insurtech sector is in a window period of

. The AI investment logic is shifting from concept hype to industrial value realization. Companies with “financial shell + technological core” have strong performance certainty, outstanding anti-cyclical capabilities, verifiable barriers, and high valuation safety margins[8]. The current PE of targets such as Yuanbao is lower than the industry average, with clear valuation repair space.

: AI health insurance platforms, AI claims technology, embedded insurance
: Quantum security applications, cross-border insurtech, AI risk control
: P2P insurance, digital transformation of traditional insurance intermediaries

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This chart shows the explosive growth trajectory of the global insurtech market. The market size is projected to grow from $194.1 million in 2024 to $8760.6 million in 2033, with a compound annual growth rate of 52.7%. The chart on the right compares the technological element distribution of fintech listed companies in 2021 and 2025; AI and big data technologies rose from 72% to 92%, becoming the absolutely dominant technologies.

This chart shows the evolution of AI application penetration in each link of the insurance value chain. The claims processing link is projected to increase from 45% in 2024 to 92% in 2030, with an increase of 104%. The customer service link has the highest penetration rate, expected to reach 75% in 2026 and 95% in 2030. The underwriting and risk assessment links will also increase from the current 38% and 42% to 85% and 88% respectively.

This matrix evaluates each sub-track from two dimensions: market growth potential and investment attractiveness. AI claims processing (85/80), health insurance technology (78/75), and embedded insurance (80/68) are in the “Leaders” quadrant, which are the most worthy investment directions. Life insurance technology (60/68) and property insurance technology (65/70) are in the “Stars” or “Problem Children” quadrants, requiring the identification of specific company value.

China’s commercial health insurance market size is growing steadily, and is expected to exceed the trillion-yuan mark for the first time in 2025. However, the growth rate has dropped from 30% in the early stage to 2-4% in recent years, indicating that the industry has entered a high-quality development period from a high-speed growth period. Structurally, medical insurance has become the leading product, while traditional critical illness insurance faces growth pressure.

The comparison shows that US-based Lemonade leads in process automation rate (85%) and R&D investment ratio (45%), Yuanbao has an advantage in the number of AI models (4900), and Droplet Insurance and Zhongan Online are also at the forefront of the industry in AI capability building.

From the founding of Lemonade in 2015 to the expected realization of full AI autonomous operation in 2030, the insurtech industry has evolved from digitalization to AI-native. Currently, it is in the critical stage of full-stack AI insurance platforms, and the launch by Baizhun Niu in January 2026 marks the entry of the industry into a new stage.

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The commercial application of AI technology in the insurance industry has entered an accelerated period, presenting the following core trends:

: Baizhun Niu’s “Full-Stack AI Ecosystem for Insurance” represents the industry’s evolution from single-point AI applications to end-to-end AI capability integration. This trend will reshape the competitive landscape of insurance companies, and enterprises with full-stack AI capabilities will gain significant competitive advantages.

: AI not only improves operational efficiency, but also spawns new business models. Lemonade’s Giveback model, embedded insurance, health management and other innovative models are changing the value creation logic of insurance.

: AI applications have spread from insurtech companies to traditional insurance companies. Major insurers such as China Pacific Insurance, Ping An, and Sunshine have launched AI innovative products, accelerating the overall digitalization level of the industry.

: Chinese insurtech enterprises have gained global competitiveness in technical capabilities, and going overseas will become an important growth engine in the next stage.

For investors, there are clear

in the insurtech track:

• Core Allocation
  : Platform enterprises with leading AI capabilities and high certainty in health insurance business growth (such as Yuanbao, Zhongan Online, Droplet Insurance)
• Satellite Allocation
  : Leading players in sub-tracks such as AI claims technology, embedded insurance
• Risk Management
  : Pay attention to changes in regulatory policies and data security compliance risks

As AI technology continues to mature and its penetration rate increases, the insurtech track is expected to replicate the excess return market of early fintech, becoming an important investment theme in the AI application field.

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[1] Global Market Insights - InsurTech Market Size, Share and Growth Analysis (2026-2033) (https://www.gii.tw/report/sky1898518-insurtech-market-size-share-growth-analysis-by.html)

[2] 21st Century Business Herald - Trillion-Yuan Commercial Health Insurance Restructuring (December 2025) (https://m.sohu.com/a/976136053_465408)

[3] Today Insurance & Finance - AI is Sparking a New Industrial Revolution (January 2026) (https://www.businesstoday.com.tw/article/category/183009/post/202601130024/)

[4] Sohu Finance - Droplet Insurance Ranked in “Top 100 InsurTech and Service” for 5 Consecutive Years (January 2026) (https://m.sohu.com/a/975853359_639898)

[5] Sina Finance - Baizhun Niu Launches “Full-Stack AI Ecosystem for Insurance” (January 2026) (https://finance.sina.com.cn/cj/2026-01-18/doc-inhhsscf8022813.shtml)

[6] Sohu Finance - “China Insurance” Reviews Top 16 Insurance Institution News Events of 2025 (January 2026) (https://m.sohu.com/a/976123095_823771)

[7] 21st Century Business Herald - From “Insurance” to “Health”: Insurance Industry Ecosystem Restructuring Behind Qingsong Health’s IPO (December 2025) (https://www.21jingji.com/article/20251229/herald/e20cb2ac16866b98ff10fa1c33670803.html)

[8] Eastmoney - Anchoring AI + Low Valuation, InsurTech Leader Yuanbao Enters the Best Allocation Window (January 2026) (https://caifuhao.eastmoney.com/news/20260113112251833915810)

[9] KPMG - 2025 KPMG China FinTech 50 Report (January 2026) (https://assets.kpmg.com/content/dam/kpmg/cn/pdf/zh/2026/01/re-china-fintech-50-2025.pdf)

[10] Securities Times - Tapping “GPU Twins”: Insurance Capital’s Hard Tech Layout Emerges (December 2025) (https://stcn.com/article/detail/3547595.html)