The marketplace model for digital insurance services has emerged as a transformative force in the insurance industry, promising enhanced market efficiency, accessibility, and consumer welfare. This article examines the evolution, benefits, challenges, and strategies for optimization of the marketplace model in the context of digital insurance services. Drawing insights from academic research and industry practices, the study explores key themes such as trust and transparency, regulatory compliance, technological integration, and customer engagement. By synthesizing existing knowledge and identifying avenues for future research, this review aims to inform stakeholders about the opportunities and challenges inherent in the marketplace model and provide guidance for advancing its effectiveness and sustainability in the digital insurance ecosystem.