Insurance Due Diligence and Consulting Market, Global Outlook and Forecast 2025-2032

MARKET INSIGHTS

Global Insurance Due Diligence and Consulting market size was valued at USD 52,050 million in 2024. The market is projected to grow from USD 58,680 million in 2025 to USD 125,670 million by 2032, exhibiting a CAGR of 13.8% during the forecast period.

Insurance Due Diligence and Consulting refer to specialized services that assess and optimize insurance portfolios for businesses. These services systematically evaluate coverage adequacy, policy terms, risk exposures, and potential liabilities to ensure alignment with organizational objectives. Core offerings include policy audits, claims analysis, risk mitigation strategies, and M&A-related insurance assessments.

The market is experiencing strong growth driven by increasing regulatory complexity, rising risk awareness among enterprises, and growing M&A activity across sectors. Furthermore, digital transformation in insurance - particularly AI-powered analytics for risk assessment and blockchain for policy verification - is creating new opportunities. Strategic partnerships are accelerating innovation, as seen when Marsh McLennan acquired actuarial consultancy Oliver Wyman in 2023 to strengthen its consulting capabilities. Leading players like Aon plc, EY, and Boston Consulting Group dominate the landscape with comprehensive due diligence frameworks serving both SMEs and large enterprises.

MARKET DYNAMICS

MARKET DRIVERS

Increasing Complexities in Risk Management to Fuel Insurance Due Diligence Demand

The global business landscape is witnessing unprecedented risk complexity due to geopolitical tensions, cyber threats, and climate change impacts. With organizations operating in increasingly volatile environments, nearly 67% of CEOs now rank risk management as their top strategic priority, creating substantial demand for professional insurance due diligence services. Insurance consultants play a critical role in identifying coverage gaps, evaluating policy exclusions, and recommending tailored solutions that account for emerging risks. The growing sophistication of risk transfer mechanisms, including parametric insurance and captive solutions, further necessitates expert guidance during mergers, acquisitions, and corporate transactions.

Regulatory Fragmentation Accelerating Consulting Needs Across Borders

Diverging insurance regulations across jurisdictions create significant compliance challenges for multinational corporations. Over 80% of cross-border transactions now require specialized insurance due diligence to navigate varying capital requirements, policy standardization rules, and solvency frameworks. Recent regulatory shifts, such as the EU's Insurance Distribution Directive and evolving US state-level regulations, have made compliance particularly complex across the financial services sector. Consulting firms are assisting clients with regulatory mapping, license optimization, and compliance framework development - services that have seen 22% annual growth in demand since 2021.

➤ For instance, the implementation of IFRS 17 insurance accounting standards has created a $15 billion global market for transition consulting services, with insurance due diligence being a critical component.

Furthermore, the insurance industry's rapid digital transformation, including adoption of AI-driven underwriting and blockchain-based smart contracts, necessitates continuous policy reviews and coverage assessments. The convergence of InsurTech innovation with traditional insurance products creates both opportunities and coverage gaps that require expert evaluation.

MARKET RESTRAINTS

Economic Uncertainty and Budget Constraints Limiting Service Adoption

While risk management priorities are growing, current macroeconomic conditions present significant adoption barriers. Nearly 40% of mid-market companies have deferred insurance consulting engagements due to cost pressures and recessionary concerns. The professional services nature of insurance due diligence makes it vulnerable to discretionary spending cuts during economic downturns. Additionally, insurance premium inflation averaging 8-12% across commercial lines has forced many organizations to prioritize basic coverage acquisition over comprehensive risk optimization services.

Other Key Restraints

Talent Shortages in Specialty Lines
The insurance consulting sector faces acute shortages of professionals with expertise in emerging areas like cyber risk and environmental liability. The global shortfall of qualified insurance risk consultants is estimated at 15,000-20,000 professionals, creating capacity constraints for consulting firms. This scarcity is particularly pronounced in Asia-Pacific markets experiencing rapid insurance market growth.

Insurer Pushback on Recommendations
Frequently, thorough due diligence identifies significant coverage deficiencies that insurers are reluctant to address. The adversarial dynamic between consultant recommendations and carrier limitations creates implementation challenges, with approximately 30% of suggested coverage enhancements failing to materialize in final policies.

MARKET CHALLENGES

Data Silos and Inconsistent Reporting Standards Impeding Comprehensive Assessments

Insurance due diligence efforts frequently encounter fragmented data environments and non-standardized risk reporting formats. Over 60% of corporate insurance programs lack centralized data repositories, forcing consultants to reconcile information from disparate systems. This challenge has become more pronounced with the rise of alternative risk transfer mechanisms that don't conform to traditional insurance reporting frameworks. The time-intensive data aggregation process often delays transactions and increases consultancy costs.

Global Disparities in Insurance Market Sophistication Creating Service Gaps

The consulting market faces uneven development across regions, with emerging markets representing only 12% of global insurance due diligence revenues despite accounting for 35% of economic activity. Many developing insurance markets lack the products, transparency, and regulatory frameworks needed to support comprehensive due diligence. This creates difficult choices for consulting firms between building local expertise or limiting service offerings.

MARKET OPPORTUNITIES

ESG Integration Creating New Consulting Demand Across Industries

The rapid mainstreaming of environmental, social and governance (ESG) considerations presents substantial growth potential. Sustainability-focused insurance due diligence engagements have grown 300% since 2020, as organizations seek to evaluate climate-related liabilities, DEI program coverage, and board accountability risks. Specialized consulting services are emerging to assess transition risks in carbon-intensive industries and evaluate the insurance implications of ESG-linked financing arrangements.

Private Equity Surge Driving Transactional Due Diligence Needs

With private equity firms currently holding over $2.3 trillion in dry powder, the anticipated wave of mergers and acquisitions creates significant opportunities for insurance due diligence providers. Sponsors are increasingly mandating comprehensive coverage reviews as part of their investment thesis development, recognizing that 15-20% of deal value can be exposed to uninsured risks in target companies. The growing complexity of warranty & indemnity insurance placements further necessitates specialized consulting support throughout the deal lifecycle.

Segment Analysis:

By Type

Due Diligence Report Segment Dominates the Market Due to Increasing M&A Activities and Risk Assessment Needs

The market is segmented based on type into:

• Due Diligence Report

• Value Issue Report

By Application

Large Enterprise Segment Leads Due to Complex Insurance Needs and Regulatory Compliance Requirements

The market is segmented based on application into:

• SMEs

• Large Enterprise

By Service Type

Risk Assessment Services Drive Market Growth as Organizations Seek Comprehensive Coverage Analysis

The market is segmented based on service type into:

• Risk Assessment

• Policy Review

• Compliance Verification

• Claims Analysis

By Industry Vertical

Financial Services Sector Accounts for Significant Demand Due to Regulatory Complexities

The market is segmented based on industry vertical into:

• Financial Services

• Healthcare

• Manufacturing

• Technology

• Others

COMPETITIVE LANDSCAPE

Key Industry Players

Specialized Consultancies Expand Offerings as Risk Management Complexity Grows

The global insurance due diligence and consulting market features a mix of multinational professional services firms, specialty consultancies, and brokerage-affiliated advisory groups competing across geographic markets. Marsh LLC and Aon plc maintain dominant positions in the space, leveraging their insurance brokerage heritage to provide integrated due diligence services to corporate clients. These industry leaders commanded over 35% combined market share in 2024.

Mid-tier consultancies like NFP Corp and MarshBerry have gained traction by focusing on specialized industry verticals and middle-market clients. The growth of these firms reflects increasing demand for tailored insurance assessments in sectors such as private equity and healthcare where risk profiles require nuanced evaluation.

EY and Boston Consulting Group represent significant competition from the professional services sector, bringing data analytics capabilities and cross-industry benchmarking expertise to insurance due diligence engagements. Their involvement underscores how corporate insurance review has evolved from policy audits to strategic risk optimization.

Meanwhile, newer entrants like ToleHouse and The Capital Group, LLC are leveraging AI-powered risk modeling and cloud-based due diligence platforms to challenge traditional service models. This technological differentiation becomes increasingly valuable as clients demand faster, more data-driven insurance assessments.

List of Key Insurance Due Diligence and Consulting Firms Profiled

• NFP Corp (U.S.)

• Howden M&A Limited (U.K.)

• Marsh LLC (U.S.)

• EY (U.K.)

• Boston Consulting Group (U.S.)

• Conner Strong (U.S.)

• The Capital Group, LLC (U.S.)

• Gallagher (U.S.)

• MarshBerry (U.S.)

• Aon plc (U.K.)

• ToleHouse (U.S.)

The competitive dynamics continue evolving as firms invest in proprietary risk assessment methodologies and digital tools. Consolidation activity has accelerated recently, with three major acquisitions completed in 2023 as larger players seek to acquire specialized capabilities in cyber risk assessment and ESG-related insurance due diligence.

INSURANCE DUE DILIGENCE AND CONSULTING MARKET TRENDS

Data-Driven Risk Assessment Elevating Market Demand

The increasing adoption of data analytics and artificial intelligence in risk assessment has become a transformative trend in the insurance due diligence and consulting sector. Modern consulting firms are leveraging predictive modeling and machine learning algorithms to evaluate risks with unprecedented accuracy. This shift is enabling companies to optimize coverage, reduce claim leakage by up to 30%, and enhance profitability across portfolios. Furthermore, real-time data integration allows insurers to customize policies based on dynamic risk profiles rather than static historical metrics. The global market for analytics-powered due diligence solutions grew by 18.5% year-over-year in 2023, reflecting this paradigm shift.

Other Trends

Regulatory Complexity Driving Specialized Consulting

Mounting regulatory pressures across jurisdictions are compelling organizations to seek specialized due diligence services. With 47% of insurers reporting compliance challenges related to Solvency II, IFRS 17, and evolving cybersecurity mandates, consulting firms are developing niche expertise in regulatory gap analysis. The EMEA region accounted for 38% of all regulatory due diligence engagements in 2023, reflecting the stringent oversight environment. This trend is particularly pronounced in commercial lines, where complex cross-border transactions require multilayered compliance verification.

M&A Activity Fueling Transactional Due Diligence Demand

The resurgence of insurance sector mergers and acquisitions - totaling $46.2 billion in global deal value during Q1 2024 - has created robust demand for specialized transactional due diligence. Consulting firms are deploying integrated assessment frameworks that evaluate not just financial exposures but also cyber vulnerabilities, ESG liabilities, and legacy claims reserves. Notably, 65% of recent insurance M&A deals involved third-party due diligence on captive insurance structures, reflecting heightened scrutiny of alternative risk transfer mechanisms. The Asia-Pacific market has shown particular growth in this segment, with deal-related consulting revenues increasing by 27% year-over-year.

Regional Analysis: Insurance Due Diligence and Consulting Market

North America
North America dominates the Insurance Due Diligence and Consulting market, accounting for over 40% of global revenue in 2024. The U.S. leads this growth, driven by strict regulatory frameworks (e.g., NAIC compliance requirements) and a highly mature insurance sector. Increasing mergers and acquisitions (M&A) activity—especially in tech and healthcare—necessitates thorough due diligence to assess risks, liabilities, and coverage gaps. The region is also witnessing a surge in cyber insurance consulting due to rising cyber threats. Large enterprises, particularly in finance and healthcare, invest heavily in insurance advisory services. However, high service costs and market saturation pose challenges for new entrants. Strategic partnerships, such as NFP Corp’s acquisitions, aim to consolidate expertise.

Europe
Europe’s market is propelled by stringent Solvency II regulations and a robust insurance infrastructure. The U.K. and Germany are the key contributors, with insurers and corporations prioritizing ESG-aligned policies and risk mitigation strategies. The demand for cross-border M&A due diligence is surging, driven by intra-European investments. Consulting firms like Aon plc and Marsh LTD leverage AI-driven risk analytics to optimize policy recommendations. Legal complexities, such as Brexit-related uncertainties, have increased the need for specialized consulting. However, economic volatility in Southern Europe and high labor costs for consultants create regional disparities. The shift to insurtech solutions is reshaping service delivery models.

Asia-Pacific
Asia-Pacific is the fastest-growing market, projected to expand at a CAGR of 16.5% through 2032. China, India, and Japan are key hubs, fueled by rising insurance penetration and corporate expansions. The region’s SME sector increasingly adopts due diligence services to comply with foreign investment regulations, but cost sensitivity limits premium offerings. Southeast Asia’s emerging economies present untapped potential, though regulatory fragmentation remains a barrier. Insurtech adoption (e.g., blockchain for policy verification) is accelerating, led by Singapore and Hong Kong. Challenges include inconsistent enforcement of insurance laws and a lack of skilled consultants. Local players collaborate with global firms like EY to bridge expertise gaps.

South America
South America’s market is nascent but growing, with Brazil and Argentina as primary drivers. Increasing foreign investments in energy and infrastructure necessitate insurance audits, though political instability and currency fluctuations deter large-scale engagements. Local insurers partner with consultants to modernize underwriting practices, but adoption lags due to budget constraints. Natural catastrophe risks (e.g., floods in Brazil) highlight the need for tailored coverage analysis, yet low awareness of due diligence benefits persists. Economic recovery post-pandemic is gradually boosting demand, with firms like MarshBerry expanding Latin American operations. Regulatory modernization efforts, such as Brazil’s SUSEP reforms, could unlock future opportunities.

Middle East & Africa
The MEA market is fragmented but evolving, with the UAE, Saudi Arabia, and South Africa leading growth. Diversification away from oil has spurred demand for corporate risk assessments, particularly in construction and logistics. The UAE’s Dubai International Financial Centre (DIFC) acts as a hub for insurance consulting, attracting firms like Gallagher. However, low insurance penetration in Africa and reliance on traditional brokerage models hinder market maturity. Regulatory developments, such as Saudi Arabia’s Vision 2030, encourage professional advisory services. Challenges include geopolitical risks and uneven access to data analytics tools. Long-term prospects remain strong as Islamic insurance (Takaful) gains traction.

Report Scope

This market research report offers a holistic overview of global and regional markets for the forecast period 2025–2032. It presents accurate and actionable insights based on a blend of primary and secondary research.

Key Coverage Areas:

• ✅ Market Overview

  • Global and regional market size (historical & forecast)

  • Growth trends and value/volume projections

• ✅ Segmentation Analysis

  • By product type or category

  • By application or usage area

  • By end-user industry

  • By distribution channel (if applicable)

• ✅ Regional Insights

  • North America, Europe, Asia-Pacific, Latin America, Middle East & Africa

  • Country-level data for key markets

• ✅ Competitive Landscape

  • Company profiles and market share analysis

  • Key strategies: M&A, partnerships, expansions

  • Product portfolio and pricing strategies

• ✅ Technology & Innovation

  • Emerging technologies and R&D trends

  • Automation, digitalization, sustainability initiatives

  • Impact of AI, IoT, or other disruptors (where applicable)

• ✅ Market Dynamics

  • Key drivers supporting market growth

  • Restraints and potential risk factors

  • Supply chain trends and challenges

• ✅ Opportunities & Recommendations

  • High-growth segments

  • Investment hotspots

  • Strategic suggestions for stakeholders

• ✅ Stakeholder Insights

  • Target audience includes manufacturers, suppliers, distributors, investors, regulators, and policymakers

FREQUENTLY ASKED QUESTIONS:

What is the current market size of Global Insurance Due Diligence and Consulting Market?

-> Global Insurance Due Diligence and Consulting market was valued at USD 52,050 million in 2024 and is expected to reach USD 125,670 million by 2032, growing at a CAGR of 13.8%.

Which key companies operate in Global Insurance Due Diligence and Consulting Market?

-> Key players include NFP Corp, Howden M&A Limited, Marsh LTD, EY, Boston Consulting Group, Aon plc, Gallagher, and MarshBerry, among others.

What are the key growth drivers?

-> Key growth drivers include increasing M&A activities, regulatory compliance requirements, and rising demand for risk assessment services in emerging markets.

Which region dominates the market?

-> North America currently holds the largest market share, while Asia-Pacific is projected to witness the fastest growth due to expanding insurance sectors in China and India.

What are the emerging trends?

-> Emerging trends include AI-powered risk assessment tools, blockchain for claims verification, and ESG-focused insurance consulting services.