Insurance Analytics Market Rising at 14% CAGR to Hit US$ 49 Billion by 2033: Fact.MR Analysis
FACT.MR
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FACT.MR
Implementation of Artificial Intelligence and Machine Learning in Data-driven Decision-making Driving Insurance Analytics Market Expansion
Rockville , Oct. 25, 2023 (GLOBE NEWSWIRE) -- The global Insurance Analytics Market is currently valued at US$ 13.15 billion and is forecasted to progress at a high-value CAGR of 14% through 2033, as per Fact.MR, a market research and competitive intelligence provider.
The market is undergoing a fundamental transition, affecting the way insurance firms operate and connect with their clients. This market is rapidly evolving due to the increased adoption of data-driven solutions and advanced technology, providing insurers with useful insights, enhanced decision-making capabilities, and improved client experiences.
Key Segments of Insurance Analytics Industry Research Report
By Component
By Application
By Deployment
By Enterprise Size
By End User
Tools
Services
Claims Management
Risk Management
Customer Management and Personalization
Process Optimization
Others
Cloud
On-premise
Small & Medium Enterprises
Large Enterprises
Insurance Companies
Government Agencies
Third-party Administrators, Brokers, and Consultancies
Combination of artificial intelligence and machine learning is poised to transform underwriting, claims processing, and fraud detection. The shift toward data-driven decision-making is one of the primary drivers of the insurance analytics business. Insurers are employing analytics to acquire a better knowledge of risk characteristics, allowing for more precise policy pricing and risk management. This improves profitability while also ensuring that policyholders receive fair and accurate insurance coverage.
Key Takeaways from Market Study
The global insurance analytics market is forecasted to maintain double-digit growth rate, expanding at a CAGR of 14% from 2023 to 2033.
The market is projected to reach US$ 49 billion by the end of 2033.
The European market is projected to reach US$ 13.7 billion by 2033, advancing at 14.4% CAGR.
The market in North America is predicted to expand at a CAGR of 12.5% through 2033.
The Asia Pacific market is projected to expand significantly over the coming years.
“The market for insurance analytics is on a trajectory of sustained growth, driven by the increasing recognition of data's value, customer-centric approaches, and a strong focus on cost efficiency and risk management. As insurers continue to embrace advanced analytics tools and technologies, the industry is poised for transformation, offering enhanced services, profitability, and competitiveness,” says a Fact.MR analyst.
Focus on Fraud Detection to Avert Financial Losses
The danger of fraudulent conduct looms large because insurers process vast amounts of claims and transactions regularly. Advanced analytics technologies backed by artificial intelligence and machine learning have become vital in detecting and preventing fraudulent conduct.
Insurance fraud can manifest itself in a variety of ways, from falsifying facts on insurance applications to orchestrating staged incidents. Not only do these acts cause enormous financial losses for insurance firms, but they also boost premiums for honest policyholders. Data analytics solutions are used in fraud detection to evaluate big databases for unexpected patterns, abnormalities, and red flags that may suggest fraudulent behavior.
Fraud detection is an area where industry collaboration and data sharing are crucial. Many insurance companies participate in industry-wide databases that communicate information on suspected fraudulent actions. This combined intelligence enables all participating insurers to spot patterns and people involved in fraudulent activity more efficiently.
Insurance fraud detection has evolved into a sophisticated and necessary component of the insurance analytics market. As the market grows, the development of increasingly more effective fraud detection systems promises to be a cornerstone in the industry's ongoing war against fraudulent activity.
The insurance analytics market is marked by intense competition, featuring both well-established industry leaders and innovative startups. As businesses embrace technological advancements, they find ample opportunities for expansion. The insurance analytics sector, however, would benefit from greater cohesion.
To adapt to the evolving needs of the insurance industry, market players typically invest in enhancing their product offerings. Prominent corporations such as IBM, SAS, and Oracle offer comprehensive analytics solutions tailored to the insurance sector. Meanwhile, startups like DataRobot and Shift Technology specialize in fraud detection and claims processing. The competitive landscape is undergoing transformation through mergers, acquisitions, partnerships, and strategic collaborations.
In October 2022, Guidewire and One Inc. joined forces to provide insurers with a ready-to-use solution, expediting a seamless payment experience for clients, adjusters, agents, and suppliers.
IBM introduced IBM Risk Analytics, a novel risk-based solution, in September 2020.
In August 2020, WNS launched EXPIRIUS, an AI and analytics-driven customer experience solution.
More Valuable Insightson Offer
Fact.MR, in its new offering, presents an unbiased analysis of the insurance analytics market for 2018 to 2022 and forecast statistics for 2023 to 2033.
The study divulges essential insights into the market based on component (tools, services), application (claims management, risk management, customer management & personalization, process optimization, others), deployment (cloud, on-premise), enterprise size (small & medium enterprises, large enterprises), and end user (insurance companies, government agencies, third-party administrators, brokers, & consultancies), across six major regions of the world (North America, Latin America, Europe, East Asia, South Asia & Oceania, and MEA).
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