Jack Hurst

The generative AI insurance market is projected to reach $14.35B by 2035, with ~29% CAGR expected across 2026-2035, as adoption accelerates industrywide.
Automation is reshaping document analysis, helping insurers process policy contracts, claims forms, and customer communications faster while reducing errors and administrative costs.
Advanced large language models are moving AI beyond chatbots, supporting underwriting analysis, claims evaluation, and more personalized customer interactions with contextual responses.
Machine learning leads by technology, fraud detection and credit analysis lead applications, and cloud deployment dominates because advanced models need scalable infrastructure.
Adoption is becoming a strategic necessity as insurers seek efficiency, better risk evaluation, optimized claims management, and stronger profitability amid financial pressures.

Insurance Generative AI Targets $14.35B

Medicare mainly offered two paths: original Medicare, run by the federal program, or Medicare Advantage, sold by private insurers with at least equivalent core coverage.
By 2025, ~54% of eligible beneficiaries were enrolled in Medicare Advantage, and a federal budget office projected that share would reach 64% by 2034.
Advantage plans often appealed through broader benefits, including drug coverage, vision, dental, hearing, plus extras like grocery cards and gym reimbursement.
Timing mattered most: initial enrollment spanned the 7 mo surrounding your 65th birthday, while current enrollees could review or switch coverage during Mid-Fall open enrollment.
Review costs closely: premiums, deductibles, copays, coinsurance, provider networks, and drug formularies could all vary widely by plan and affect overall affordability.
For 2026, many Advantage and Part D plans changed benefits or disappeared, while covered drug spending faced a $2.1K out-of-pocket cap across Medicare drug plans.
