Insurance Analytics Global Market Report 2024

Insurance analytics involves the collection, analysis, and extraction of relevant insights from diverse data sources to effectively manage risks and optimize insurance contracts in fields such as health, life, property, or casualty. This process is crucial for generating leads, enhancing customer satisfaction, accurately assessing risk for underwriting, and facilitating overall business growth. Insurance analytics is instrumental in tasks such as detecting fraudulent claims, real-time risk mitigation, influencing customer behavior, and predicting lifetime value.

The primary components in the insurance analytics market are solutions and services. Solutions encompass the processes of collecting, analyzing, and extracting insights from various data sources. Applications of insurance analytics include claims management, risk management, customer management and personalization, process optimization, and other relevant areas. Various end-users of insurance analytics include insurance companies, government agencies, third-party administrators, brokers, and consultancies.

The insurance analytics market research report is one of a series of new reports that provides insurance analytics market statistics, including insurance analytics industry global market size, regional shares, competitors with an insurance analytics market share, detailed insurance analytics market segments, market trends and opportunities, and any further data you may need to thrive in the insurance analytics industry. This insurance analytics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The insurance analytics market size has grown rapidly in recent years. It will grow from $13.07 billion in 2023 to $15.03 billion in 2024 at a compound annual growth rate (CAGR) of 15.0%. The expansion observed during the historical period can be attributed to factors such as increased data volume in the insurance industry, heightened regulatory compliance and reporting requirements, the imperative for fraud detection and prevention, a shift towards personalized insurance products, and competitive pressure and market dynamics.

The insurance analytics market size is expected to see rapid growth in the next few years. It will grow to $27.5 billion in 2028 at a compound annual growth rate (CAGR) of 16.3%. The anticipated growth in the forecast period can be attributed to the adoption of advanced predictive modeling techniques, the expansion of usage-based insurance models, a growing emphasis on customer experience analytics, a focus on cybersecurity and risk management analytics, and the increasing competition in the insurance industry. Key trends expected in the forecast period encompass the integration of artificial intelligence in analytics, the utilization of real-time analytics for claims processing, the incorporation of telematics and IoT for risk assessment, the implementation of blockchain for transparent and efficient transactions, and the use of collaborative analytics for gaining industry insights.

The substantial growth of the insurance analytics market is attributed to the increased digitalization within the insurance industry. Digitalization plays a vital role in various facets of the insurance analytics market, including automation, underwriting, risk scoring, and claims processing. It facilitates greater market penetration, faster query resolution, customer dashboards, and an overall enhanced customer experience. Notably, the COVID-19 pandemic has accelerated the digitization of insurance operations and the development of next-generation operating models, according to a survey by KPMG. Insurance CEOs reported that the pandemic significantly expedited progress toward creating seamless digital customer experiences, with 85% acknowledging the impact.

The anticipated rise in insurance fraud is expected to be a driving force behind the growth of the insurance analytics market. Insurance fraud, involving deceptive acts to obtain undeserved financial benefits, has prompted the increased adoption of insurance analytics. This technology is utilized to detect and prevent fraud by analyzing extensive data sets, identifying patterns, and spotting anomalies indicative of fraudulent claims or activities. Notably, a report by FRISS indicated a 20% suspicion rate of potential misrepresentation or fraud in insurance claims in the US, highlighting the importance of insurance analytics in addressing this issue.

A key trend in the insurance analytics market is technological innovation, with major players embracing big data, machine learning, and artificial intelligence (AI) technologies. These technologies are applied in underwriting, claims management, and fraud detection, automating tasks and solving complex problems. For instance, EXL introduced its LifePRO 20 Digital Insurance Platform, an AI-enabled solution supporting end-to-end digital transformation in insurance policy administration. The platform covers a broad spectrum of life, health, and annuity products, aiding companies in bringing new products to market efficiently and driving down operational costs.

Major companies in the insurance analytics market are developing innovative AI platforms. In May 2023, Atidot launched a groundbreaking platform aimed at revolutionizing the insurance industry. This AI-driven system predicts policyholder behavior in real time, enabling insurers to make informed decisions, enhance revenue, and improve customer retention. The platform integrates with external Customer Relationship Management (CRM) systems, facilitating targeted marketing campaigns and personalized customer engagement. It empowers insurers with data-driven decision-making tools and enhances their overall product offerings.

In November 2021, Verisk, a data analytics and risk assessment firm, acquired Data-Driven Safety, enhancing its capabilities in auto insurance analytics. This acquisition positions Verisk to provide insurers with valuable insights to improve underwriting, boost customer satisfaction, and advance public safety through data-driven strategies.

Major companies operating in the in the insurance analytics market report are Applied Systems Inc., Microsoft Corporation, Open Text Corporation, Oracle Corporation, Pegasystems Inc., Verisk Analytics Inc., SAS Institute Inc., International Business Machines Corporation (IBM), Guidewide LLC, Sapiens International Corporation N. V., Duck Creek Technologies LLC, LexisNexis Risk Solutions Group Holdings Pty Ltd, Munich Reinsurance America Inc., Fair Isaac Corporation (FICO), Insurity Inc., Xactware Solutions Inc., Salesforce. com Inc., Cognizant Technology Solutions Corporation, Milliman Inc., Symbility Solutions Inc., RiskMatch LLC, Tiger Analytics Inc., WNS Global Services Inc., Adeptia Inc., Shift Technology SAS, Cover-All Technologies Inc., SAP SE, Bluejay Management Limited, Octo Telematics Ltd., EagleEye Analytics LLC, Metromile Inc., Slice Labs Inc., Zesty. ai

North America was the largest region in the insurance analytics market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the insurance analytics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the insurance analytics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The insurance analytics market consists of revenues earned by entities by providing insurance analytics tools such as policy manipulation and fraud detection. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified)).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


This product will be delivered within 3-5 business days.