Insurance Analytics Market Outlook 2031:
The global insurance analytics market size was valued at USD 11.66 Billion in 2022 and is projected to reach USD 41.34 Billion by 2031, expanding at a CAGR of 15.1% during the forecast period 2023 - 2031. The growth of the market is attributed to increased use of data driven decision making tools and acceptance of advanced analytical tools in the insurance sector.
Insurance analytics is the process of analyzing, collecting, and retrieving meaningful understandings from numerous data bases to effectively manage risks and offer the finest probable insurance contracts to the customers. The contract of insurance is linked in various fields including property, health, assets, life, and others.
Additionally, insurance analytics helps in transforming claims process, pricing & risk selection, customer loyalty, and others. The adoption of insurance analytics had established satisfactory procedure to accomplish numerous businesses working leading to the growth of the users.
The COVID-19 pandemic outbreak has had considerable impact on market growth. During the pandemic, several insurance organizations have adopted the analytical tools to prevent surge in fraudulent cases in the sector and continue their service operations effectively.
This leads to generate growth opportunities for the insurance analytics market. However, in pandemic, the rate of newly issued policies were substantially declined due to low purchasing power of consumers.
Insurance Analytics Market Trends, Drivers, Restraints, and Opportunities
- Growing acceptance of insurance analytics services and tools by small & medium enterprises and large enterprises is a key factor driving the insurance analytics market growth.
- Increasing fraudulent activities and rapid digitalization lead to adoption of analytical tools among insurance companies. These are major factors projected to drive the insurance analytics market expansion during the forecast period.
- Changing financial policies and lack of uniform regulation of the insurance sector across the globe are major restraining factors hampering the insurance analytics market growth during the projected timeline.
- Increasing data security concerns as insurance analytics process involves collecting and storing customers personal information act as a major challenge that can restrict the market growth.
- Integrating advanced technology such as Internet of Things with insurance analytics tool is projected to create significant growth opportunities of the market.
Scope of Insurance Analytics Market Report
The report on the global insurance analytics market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Insurance Analytics Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
2016 – 2021
2023 – 2031
Enterprise Sizes (Small & Medium Enterprises and Large Enterprises), Applications (Process Optimization, Claim Management, Customer Management & Personalization, Risk Management, and Others), End-users (Third-party Administrators, Brokers, & Consultancies; Insurance Companies; and Government Agencies), Deployment (Cloud-based and On-premise), and Components (Services [Professional Services and Managed Services] and Tools).
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
LexisNexis Risk Solutions; MicroStrategy Inc.; Oracle Corp.; Sapiens International; Verisk Analytics, Inc.; Hexaware Technologies; Microsoft Corp.; OpenText; Tableau Software, LLC; and PEGASYSTEMS INC.
Insurance Analytics Market Segment Insights
Large enterprises segment is expected to grow at a rapid pace
Based on enterprise sizes, the global insurance analytics market is bifurcated into small & medium enterprises and large enterprises. The large enterprises segment is expected to grow at a rapid pace during the forecast period owing to minimize infrastructure cost, improve customer loyalty, and analytic tools, which help enterprises to meet changing government standards.
However, the small & medium enterprises segment is anticipated to expand at a substantial CAGR during the forecast period due to adaption of insurance analytics tools and services by small & medium enterprises.
Customer management & personalization segment to expand at a considerable CAGR
In terms of applications, the market is fragmented into process optimization, claim management, customer management & personalization, risk management, and others. The risk management segment is expected to account for a major market share during the projected timeline attributed to wide adoption of insurance analytics in risk management analysis.
The tool helps to get an automatic result for improved decision-making, perceptions into impeding risks, and reveals hidden pattern in data. On the other hand, the customer management & personalization segment is projected to expand a considerable CAGR during the forecast period as insurers are now providing analytics solutions to offer additional policy discounts to proactive risk management services to match their customer requirements.
Insurance companies segment is estimated to account for a significant market share
On the basis of end-users, the insurance analytics market share is segregated into third-party administrators, brokers & consultancies; insurance companies; and government agencies. The insurance companies segment is estimated to account for a significant market share during the forecast period owing to increasing demand of online insurance service, critical financial year report, and customized consultation service from consumers.
Cloud segment is anticipated to grow at a robust pace
Based on deployment, the market is bifurcated into cloud-based and on-premise. The cloud-based segment is anticipated to grow at a robust pace as cloud deployment provides security to online offerings and allows insurance analytics tools to be easily integrated with third-party applications. Organizations are increasingly adopting cloud deployment as they are compatible with regulatory prerequisites.
Cloud deployment also offers real-time account-to-account data sharing. Additionally, cloud providers offer new upgrades and versions for cloud-based data architectures that allow users to move up to a better software version without impacting their core operations.
Tools segment to hold considerable market share
On the basis of components, the insurance analytics market share is bifurcated into services and tools. The services segment is further divided into professional services and managed services. The tools segment is expected to hold considerable market share during the forecast period as insurance analytics tools provides improved security to individual as well as business a fast-track underwriting operation.
Moreover, insurers can use insights to better inform and improve friction-free claims using various tools. On the other hand, the services segment is projected to expand a robust CAGR during the forecast period due to services segment cover wide range of services such as fraud & customer analytics services, claims analytics services, and subrogation analytics.
North America is anticipated to constitute a key market share
In terms of region, the global insurance analytics market share is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to constitute a key share of the market during the projected period owing to increasing adaption of insurance analytics tool by end user agencies.
Moreover, the presence of stronger key market players, government initiatives to spread awareness about need of insurance analytics tools, and escalating advancement in insurance analytics tool are expected to further accelerate the segment growth. However, the Asia Pacific market is anticipated to grow at a rapid pace during the forecast period due to increasing digitalization in insurance agencies and adoption of cloud-based technologies among companies in the region.
The global insurance analytics market has been segmented on the basis of
- Small & Medium Enterprises
- Large Enterprises
- Process Optimization
- Claim Management
- Customer Management & Personalization
- Risk Management
- Third-party Administrators, Brokers, & Consultancies
- Insurance Companies
- Government Agencies
- Professional Services
- Managed Services
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
Key players competing in the global insurance analytics market are LexisNexis Risk Solutions; MicroStrategy Inc.; Oracle Corp.; Sapiens International; Verisk Analytics, Inc.; Hexaware Technologies; Microsoft Corp.; OpenText; Tableau Software, LLC; and PEGASYSTEMS INC.
Companies are focusing on various strategies such as mutual collaboration, developing new and innovative product, investment in research & development to develop new analytical tools, upgrade existing tools, and improving their overall product portfolios for expanding their market share. In 2018, Verisk Analytics, Inc. invested USD 47.6 million in research & development for developing innovative and new technologies.
In February 2018, Adaptik Corp. was acquired by Sapiens International. The acquisition helped the former company to strengthen its presence in North America.