Artificial intelligence is increasingly used in health insurance for claims automation, improving speed, cost efficiency, and fraud detection. Over 60 insurers aim for real-time prior authorization responses by 2026. Employer-sponsored coverage remains dominant but unevenly accessible, driving growth in supplemental and individual plans. The global market, valued at $1.98 trillion in 2025, is projected to grow at 7.76% CAGR through 2031, led by group policies and rising demand in Asia-Pacific. Premium affordability and chronic disease prevalence remain key challenges.