Claims management market size was USD 43.66 Bn in 2025, projected to reach USD 84.21 Bn by 2035, growing at a CAGR of 6.80% from 2026 to 2035. Key drivers include AI-enabled claims automation, cloud migration of claims systems and rising catastrophe-related claim volumes, with North America leading the market
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The claims management market was valued at USD 43.66 Bn in 2025 and USD 46.58 Bn in 2026. It is forecast to reach USD 84.21 Bn by 2035, growing at a 6.80% CAGR from 2026 to 2035. North America leads with about 38% share, while Services is the largest component at about 62%.
Our analysis shows that growth is shifting from labor heavy claims handling toward platform led, data rich workflows that insurers, administrators and self-insured buyers can scale across lines of business.
Values in USD Billion
By Component: Services held the largest share, expanding from USD 27.07 Bn in 2025 to USD 45.48 Bn by 2035; Software is the fastest-growing at 8.84% CAGR from 2026–2035.
By Deployment Mode: Cloud held the largest share, expanding from USD 20.09 Bn in 2025 to USD 57.26 Bn by 2035, and is also the fastest-growing at 10.96% CAGR from 2026–2035.
By Insurance Type: Motor held the largest share, expanding from USD 14.85 Bn in 2025 to USD 25.26 Bn by 2035; Health is the fastest-growing at 8.29% CAGR from 2026–2035.
By Function: Investigation and Adjudication held the largest share, expanding from USD 15.28 Bn in 2025 to USD 26.10 Bn by 2035; Claims Reporting and Compliance is the fastest-growing at 8.74% CAGR from 2026–2035.
By End User: Insurance Carriers held the largest share, expanding from USD 27.08 Bn in 2025 to USD 50.52 Bn by 2035; Self-Insured Enterprises and Government is the fastest-growing at 7.53% CAGR from 2026–2035.
Dominant Region: North America held the largest share, expanding from USD 16.59 Bn in 2025 to USD 28.64 Bn by 2035.
Fastest-Growing Region: Asia-Pacific is the fastest-growing at 8.82% CAGR from 2026–2035, rising from USD 10.48 Bn in 2025 to USD 24.42 Bn by 2035.
Dominant Country: The U.S. held the largest share, expanding from USD 14.27 Bn in 2025 to USD 24.06 Bn by 2035.
Fastest-Growing Country: India is the fastest-growing at 12.26% CAGR from 2026–2035, rising from USD 0.84 Bn in 2025 to USD 2.69 Bn by 2035.
The absolute opportunity between 2026 and 2035 is USD 37.63 Bn, which signals sustained room for platform vendors, administrators and analytics specialists to add revenue.
According to NMSC analysis, buyers are reallocating spend from custom internal builds to configurable cloud platforms, which favors vendors that combine workflow, data and services under one commercial relationship.
The above infographic shows that value in claims management sits where insurers, administrators and technology vendors exchange data with claimants, repair networks and regulators. Platform vendors win when they connect those parties through open integrations. Administrators win when field expertise is paired with digital workflow. Regulators set the guardrails that determine how far automation can go. Participants should map their offering to the node where they hold the strongest data advantage.
The market covers software platforms and services used to receive, investigate, adjudicate, pay and report insurance claims. It spans claims administration platforms, analytics and AI tools, fraud and subrogation solutions, third-party administration, loss adjusting and outsourced claims services. We classify it as a growth stage market because cloud migration, AI adoption and consolidation among providers are all active at the same time. Regulators are also tightening expectations on automated decisions, which shapes buying criteria.
Our findings suggest that four structural shifts are redefining how claims organizations buy and deploy technology.
In October 2026, Guidewire introduced a platform that runs AI agents inside the same environment as its core insurance applications, with agents capturing loss details, summarizing files and flagging risk. Crawford has also forecast increased straight-through processing of low-complexity claims in 2026. Adjusters gain time for complex decisions, while insurers must govern what agents can access. We expect governance tooling to become a purchase criterion.
Cloud is already the largest deployment mode in our estimates, at USD 20.09 Bn in 2025, and it is forecast to reach USD 57.26 Bn by 2035. Vendors are increasingly introducing partner extensions for cloud-based claims environments, including the cloud-native recorded statement accelerator launched by n2uitive for ClaimCenter in August 2026. Insurers gain faster updates and easier integration, but they must manage data residency and migration risk.
Insurers increasingly build best-of-breed claims technology stacks via certified partner extensions instead of developing every core function internally. In January 2026, Quantexa made its decision intelligence accelerator for ClaimCenter available on the Guidewire Marketplace, giving insurers a ready integration for connected claims data. Smaller specialists gain distribution, while platform owners strengthen ecosystem lock in. Buyers should test integration depth before committing.
Administrators and software vendors are moving into each other's territory. Sedgwick introduced Omni in May 2026 as a proprietary ecosystem that unites its claims data with AI and machine learning. CCC completed its EvolutionIQ acquisition in January 2025 to extend AI guidance into disability and workers' compensation claims. The result is a blended offer of software plus expertise that raises switching costs.
| Generative and agentic AI in claims workflows | driver | +1.1 | Global; strongest in North America and Europe | 2026–2030 |
| Cloud migration of core claims systems | driver | +0.9 | Global | 2026–2032 |
| Catastrophe related claim volume volatility | driver | +0.6 | North America and Asia-Pacific | 2026–2035 |
| Fair claims handling and AI governance rules | driver | +0.4 | U.S. and Europe | 2026–2030 |
| Legacy system integration cost and migration risk | restraint | −0.7 | Global | 2026–2029 |
| Data privacy, residency and model risk concerns | restraint | −0.5 | Europe and Middle East & Africa | 2026–2032 |
| Shortage of experienced adjusters and claims engineers | restraint | −0.4 | North America and Europe | 2026–2030 |
Weather-related claim surges are increasing the need for scalable claims management capabilities and advanced technology. In October 2026, Guidewire introduced AI agents integrated into claims workflows, supporting processes from first notice of loss through adjudication. Insurers are adopting these solutions to accelerate claim processing, reduce cycle times, and enable adjusters to focus on complex cases. This shift is strengthening demand for AI-enabled claims platforms and increasing software adoption across claims operations.
Severe weather events drive temporary increases in insurance claims, creating additional demand for claims adjusting services and technology. Crawford reported that Hurricanes Helene and Milton contributed more than USD 30 million in revenue during the fourth quarter of 2024. However, its Platform Solutions revenue declined by 30.5% in 2025 to USD 120.8 million as weather-related activity moderated. These fluctuations highlight the importance of flexible workforce capacity and scalable technology platforms that allow claims service providers to respond efficiently to changing catastrophe-related demand.
The NAIC adopted its model bulletin on insurers' use of AI systems in December 2023, and individual states adopt it through their own bulletins. This creates a patchwork of documentation, testing and vendor oversight duties. Vendors must provide audit trails and explainability, which raises build cost. Insurers with strong governance can still automate faster, so the effect is a slower but safer adoption curve.
Disability and workers' compensation files are long, document heavy and costly to manage. CCC bought EvolutionIQ to bring AI guidance to this area. Administrators and carriers that adopt AI-guidance tools can shorten claims processing times and improve return-to-work planning. Success depends on clinical data access and adjuster trust in recommendations.
Asia-Pacific is the fastest growing region at 8.82% in our model, reaching USD 24.42 Bn by 2035. Insurers expanding quickly can deploy cloud claims platforms without large legacy estates. Cloud vendors and local integrators gain most, and vendors with regional hosting gain an edge. Realization depends on local data residency rules and language capable automation.
Fraud Detection and Subrogation grows at 8.53% in our function view, ahead of the market. Recovery and leakage control show direct financial returns, which eases budget approval. Analytics vendors and platform marketplaces benefit. Value depends on clean claims data and integration into adjuster workflows. Early movers can lock in carrier data partnerships.
The above infographic indicates that rivalry and buyer power are the two forces that matter most for providers. Large carriers negotiate hard and run multi-vendor stacks, so suppliers must prove measurable outcomes. Entry barriers protect core platforms but not point solutions, which keeps pressure on specialists. Providers should prioritize deep integrations, outcome based pricing and proprietary data to defend margins.
| Region | 2025 (USD Billion) | 2035 (USD Billion) | CAGR (%) |
|---|---|---|---|
| North America | $10.0 USD Billion | $40.0 USD Billion | 9.0% |
| Europe | $17.1 USD Billion | $51.1 USD Billion | 27.0% |
| Asia-Pacific | $24.2 USD Billion | $62.2 USD Billion | 25.0% |
| Middle East & Africa | $31.3 USD Billion | $73.3 USD Billion | 23.0% |
| Latin America | $38.4 USD Billion | $84.4 USD Billion | 12.0% |
We found that the Claims Management Market is a layered contest between platform vendors, administrators and AI specialists, with scale and integration depth deciding who wins large programs.
Providers compete on integration depth, delivery capacity and measurable outcomes rather than price alone. Platform vendors court carriers with cloud claims suites and partner marketplaces. Administrators sell field expertise and capacity that flexes with catastrophe activity. Crawford's 2025 revenue before reimbursements of USD 1.266 Bn shows the scale at which a listed administrator operates.
Three archetypes stand out. Platform vendors such as Guidewire and Duck Creek sell core claims systems. Administrators such as Sedgwick, Crawford and CorVel sell outsourced handling and loss adjusting. Data and AI specialists such as Verisk, CCC and Shift Technology sell analytics and decision tools. Many firms now blend two archetypes, which blurs boundaries.
Differentiation is moving from features to data and governance. Guidewire stresses agents that run on the same platform as the core, while Sedgwick stresses expert led work supported by AI. Both claim lower friction for claimants. Pricing is shifting toward subscription and outcome linked fees, and geographic expansion often follows large carrier relationships.
Acquisitions add scarce AI talent and new claim types, as CCC showed with EvolutionIQ. Partnerships extend platforms without heavy build cost, as seen in Quantexa's accelerator. Both strategies favor companies with established customer relationships, while insurance carriers prefer partners with proven implementation and service-delivery capabilities. Smaller vendors should seek marketplace placement to gain reach.
Our assessment indicates that the following companies lead the global market, listed in indicative ranked order by scale of claims related operations.
Based on research conducted by NMSC, the following verified developments from 2025 and 2026 most clearly affect the market.
| Date | Event |
|---|---|
| October 2026 | Guidewire introduced an agentic AI platform that places AI agents inside its claims applications, covering first notice of loss through adjudication. Some features are limited to early access customers or remain on the roadmap. |
| August 2026 | n2uitive launched a cloud native accelerator for Guidewire ClaimCenter that lets adjusters initiate, capture and access recorded statements inside the claims system. |
| May 2026 | Sedgwick introduced Omni, a proprietary digital ecosystem that combines its claims data with AI and machine learning capabilities, announced at RISKWORLD 2026. |
| January 2026 | Quantexa made its decision intelligence accelerator for Guidewire ClaimCenter globally available on the Guidewire Marketplace. |
| January 2025 | CCC Intelligent Solutions completed its acquisition of EvolutionIQ, adding AI guidance for disability and injury claims management. |
Global Chief Claims Officer, Commercial Risk Solutions | Aon
"“The winners in the next decade won’t be the insurers that strip the most cost out of claims.”"
Barnes shared this perspective in Aon's Q2 2026 Global Insurance Market Overview, discussing the growing use of AI and digital tools in claims management.
Carriers are the largest buyers at USD 27.08 Bn in 2025. They gain shorter cycle times, better fraud control and lower handling cost, but face integration burden and governance duties. Priority actions include moving to cloud claims, which grows at 10.96%, and piloting AI on low complexity files first. Early wins build internal confidence.
Technology spending by Third-Party Administrators is projected to grow at a 7.45% CAGR, while the Third-Party Administration services segment is forecast to reach USD 21.91 Bn by 2035. They benefit from outsourcing demand and catastrophe surges but face margin pressure from automation. Likely actions include building proprietary digital platforms and offering blended service and software contracts. Scale helps absorb catastrophe peaks.
Software is the fastest growing component at 8.84%, led by Claims Analytics and AI. Vendors gain recurring revenue and marketplace reach, while investors gain exposure to sticky workflows. Constraints include long sales cycles and regulatory scrutiny of automated decisions. Vendors should invest in explainability and partner ecosystems. Partner extensions also increase platform stickiness.
The Claims Management Market is forecast to grow from USD 46.58 Bn in 2026 to USD 84.21 Bn by 2035 at 6.80%, adding USD 37.63 Bn. Software and cloud deployment outgrow the total, while services remain the largest revenue base. Growth is durable because claims volumes, regulatory duties and automation needs all persist across insurance cycles.
NMSC's analysis indicates that providers should combine proprietary claims data, open integrations and expert services. Platform vendors should deepen marketplaces and agent governance. Administrators should build digital ecosystems that complement field teams. Specialists should target high return use cases such as fraud, subrogation and medical review. Execution speed will decide results.
Our analysis indicates that investment opportunities are particularly attractive in businesses with recurring software revenue, proprietary claims data and established or expanding operations in Asia-Pacific. Services assets offer steady cash flow but face automation pressure. Investors should weigh catastrophe driven earnings swings, as Crawford's 2025 Platform Solutions decline illustrates. Diversified exposure across lines reduces volatility, and valuation discipline remains important.
Key shifts include the move to agentic AI, cloud first claims cores and blended service plus software offers. Risks include integration failures, uneven AI regulation across states and countries, and talent shortages. Providers should track regulatory updates and invest in controls early. Vendors with clear audit features should gain trust, and buyers should plan phased rollouts.
Three pathways stand out: AI enabled analytics and fraud control, cloud migration of mid size insurers, and expansion in Asia-Pacific, which grows at 8.82%. Each pathway rewards firms that integrate with existing carrier systems. Execution quality will separate leaders from followers. Partnerships with platform owners can speed entry, and vendors should budget for localization and compliance work.
We have successfully delivered the following deep-dive customizations:
Crawford & Company, 2025 fourth quarter and full year results (Business Wire)
businesswire.comCrawford & Company, 2025 fourth quarter earnings release (investor relations)
s25.q4cdn.comSedgwick Claims Management Services, Inc., Omni announcement (PR Newswire)
prnewswire.comn2uitive Corporation, accelerator for Guidewire ClaimCenter (PR Newswire)
prnewswire.comQuantexa, accelerator for Guidewire ClaimCenter on Guidewire Marketplace (GlobeNewswire)
aap.com.auCCC Intelligent Solutions, completion of EvolutionIQ acquisition (investor relations)
ir.cccis.com/node/9501/pdfGuidewire agentic AI platform launches coverage (IT Brief)
itbrief.co.nzNational Association of Insurance Commissioners, AI model bulletin adoption map
content.naic.orgClaims Journal, Crawford claims trends report coverage
claimsjournal.comVerified deal activity centers on AI capabilities. CCC used cash and stock to acquire EvolutionIQ, and Guidewire has expanded its agent tooling. Our assessment suggests that investors favor businesses with proprietary claims data, recurring revenue streams and deeply integrated claims-management workflows. Pure services assets draw less enthusiasm unless they pair expertise with technology. We expect continued selective consolidation.
Cloud platforms and partner marketplaces set the capacity ceiling for automation. Cloud deployment is estimated to expand from USD 22.45 Bn in 2026 (rising from USD 20.09 Bn in 2025) to USD 57.26 Bn by 2035. Investment in system observability, data infrastructure and cybersecurity will influence the volume of claims that can be processed through automated workflows. Capacity planning should include catastrophe peaks.
Fair treatment of claimants, transparent AI decisions and climate related loss resilience are the main ESG themes. The NAIC bulletin ties AI use to documented programs and testing. Faster digital settlement also helps communities recover after disasters. Investors should check bias testing, data protection and audit readiness during diligence. Strong controls also protect brand trust.
Mayurima Roy is Research Analyst at Next Move Strategy Consulting, where she has spent 4 years working across the firm's full industry coverage rather than a single fixed vertical. Her work centers on structured research, ongoing trend tracking, competitive assessment, and insight-led content development, translating complex market data into clear, decision-ready narratives that support informed client decision-making across diverse global industries, market sectors, and world regions every day.
Supradip Baul is an accomplished business consultant and strategist with over a decade of rich experience in market intelligence, strategy, technology, and business transformation. His work has included rigorous qualitative and quantitative analysis across multiple industries, helping clients shape investment decisions and long-term roadmaps. Earlier in his career, he was associated with Gartner, where he contributed to industry-leading reports and market share analyses. He has worked with leading global companies and holds an MBA with a dual specialization in Marketing and Finance.
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