The global market for insurance fraud detection expected to reach $35.7 billion by 2033 from $55.4 billion in 2024, at a CAGR of 23.1%. Because of the rapid adoption of insurance fraud detection technology among organisations in this region, North America is anticipated to hold the largest market size in the detection of insurance fraud and is anticipated to hold the maximum market during the forecast period. The presence of a large number of insurance fraud detection solution and service providers in this region is also expected to drive the market growth during the forecast period. Additionally, the rise in threats and vulnerabilities, as well as government compliances, are expected to drive the market. While the Asia-Pacific region is expected to grow at the fastest CAGR during the forecast period, this is expected to be driven by increasing awareness about the benefits of insurance fraud detection solutions among small and medium enterprises as well as in large enterprises to prevent various types of fraud such as payment frauds, identity theft, claim fraud, and other types of fraud that drive the market growth.
The current report comprises quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends & technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
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Expansion of cyberattacks, large number of identities and resulting financial losses drive the market for fraud detection services and solutions
The expansion of cyberattacks, the astronomical number of identities that businesses need to manage, and the considerable financial losses that have resulted from attacks on the insurance industry are all factors that are driving the growth of the market. For example, the Federal Bureau of Investigation reports that insurance fraud is the second most common type of white-collar crime in the United States, and that it is responsible for losses totalling approximately $300 million annually.Need for more sophisticated and advanced technology presents a lucrative opportunity
The rapid advancement of technology will create new market opportunities, which will in turn improve the growth rate of the industry. Market expansion is being fuelled by a number of recent advances in technology, including the combination of connected devices with internet of things (IoT), machine learning (ML), and artificial intelligence (AI) solutions. These technologies provide assistance with transaction monitoring, risk mitigation, tracking of financial crimes, fraud detection, and management of regulatory compliance requirements. In addition, an increase in strategic collaborations and the emergence of new markets will serve as market drivers and further raise advantageous chances for the growth rate of the market.Risk of data leak by third-party services
The BFSI industry makes use of various security solutions and services due to its susceptibility to external as well as internal security threats. On the other hand, BFSI security organisations are typically third-party service providers that offer security solutions to a number of clients and industry verticals all at the same time. In addition to this, it may make it difficult for businesses to manage the data coming from a number of different companies. As a consequence of this, issues in trusting security solutions and services, as well as the possibility of engaging third parties, both of which could result in the disclosure of sensitive data, restrict the expansion of the industry.Market Segmentation by Component
In 2024, the authentication solution sector was responsible for the greatest share of the total market revenue. The manual processing of insurance fraud cases is no longer used by insurance companies. The development of new technologies, such as data analytics for the purpose of fraud detection, has emerged as one of the most important tools that companies use in order to manage the dangers and difficulties presented by the expanding fraud ecosystem. Combining data from a variety of sources allows for the development of very effective fraud detection capabilities. In addition, analytics has been of critical importance in the process of combining internal data with data from other parties, which has resulted in improved fraud detection capabilities.Market Segmentation by Application
The increased application of advanced analytics and technology has led to an increase in the detection of fraudulent activity in the insurance industry. In addition, an increase in the number of fraudulent insurance claims, such as false medical records, inaccurate claims, kidnappings, and others, has led to an increase in the number of fraud detection products and solutions available on the market for insurance companies. These products and solutions are intended to cut down on fraudulent claim settlement activities. A further aspect that is contributing to the expansion of the insurance fraud detection market is the rising use of increasingly sophisticated analytics and technological solutions. In addition, the expansion of cyber security infrastructure for the identification of insurance fraud is one of the most important factors contributing to the growth of the market.Market Segmentation by Region
In 2024, the North America region had the largest revenue share, which was more than 40%. The expansion of the region has been bolstered by the presence of significant players such as ACI Worldwide, Inc., BAE Systems, and Fiserv, Inc., amongst others. Property, liability, and life annuities make up the three primary subsectors that make up the United States' insurance industry within the North American region. The government of the United States of America has made it mandatory for its citizens to purchase health and life insurance. As a result, an enormous market was created for the insurance industry. As a consequence of this, it has created the possibility of opening the door to exploit vulnerabilities for the purpose of fraudulent operations such as claims processing. According to research that was carried out by the Federal Bureau of Investigation (FBI), the overall estimated cost of insurance fraud in the U.S. is anticipated to be more than USD 40 billion each year. This is anticipated to provide development prospects for the industry.Market to Remain Fragmented During the Forecast Period
The presence of numerous individual and comprehensive insurance fraud detection solutions providers that are active across the globe has resulted in a market that is extremely fragmented. Key players in this market segment include ACI Worldwide, Inc., BAE Systems, Accenture, Experian Information Solutions, Inc., Fair Isaac Corporation (FICO), Fiserv, Inc., FRISS, IBM Corporation, TransUnion LLC, Kount Inc., LexisNexis Risk Solutions, Perceptiviti Data Solutions Pvt. Ltd., SAP SE, SAS Institute Inc., Simility, Software AG, Uplexis. The growth of small and medium firms offering individualized solutions contributes to the industry's other distinguishing feature, which is an intense rivalry. In addition, it is anticipated that suppliers of fraud detection as a service would boost market competitiveness as a result of the comprehensive and cost-effective product offers that they provide. As the number of instances of fraudulent activities continues to pose a problem for the insurance sector, fraud detection companies are anticipated to grab the opportunity presented by the changing ecosystem. It is predicted that the suppliers would offer sophisticated solutions that cater to particular issues, making it possible for an insurer to have a comprehensive fraud detection procedure.Historical & Forecast Period
This study report represents an analysis of each segment from 2023 to 2033 considering 2024 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2025 to 2033.The current report comprises quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends & technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. The key data points that enable the estimation of Insurance Fraud Detection market are as follows:- Research and development budgets of manufacturers and government spending
- Revenues of key companies in the market segment
- Number of end users & consumption volume, price, and value.
- Geographical revenues generate by countries considered in the report
- Micro and macro environment factors that are currently influencing the Insurance Fraud Detection market and their expected impact during the forecast period.
Market Segmentation
Component
- Solution
- Fraud Analytics
- Authentication
- Governance, Risk and Compliance
- Others
- Services
Deployment Mode
- Cloud
- On-premise
Application
- Claims Fraud
- Identity Theft
- Payment Fraud and Billing Fraud
- Money Laundering
End-use Vertical
- Automotive
- Banking, Financial Services & Insurance (BFSI)
- Healthcare
- IT & Telecom
- Energy & Utilities
- Retail
- Property & Real Estate
- Others (Manufacturing, etc.)
Region Segment (2023 - 2033; US$ Million)
- North America
- U.S.
- Canada
- Rest of North America
- UK and European Union
- UK
- Germany
- Spain
- Italy
- France
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East and Africa
- GCC
- Africa
- Rest of Middle East and Africa
Key questions answered in this report
- What are the key micro and macro environmental factors that are impacting the growth of Insurance Fraud Detection market?
- What are the key investment pockets concerning product segments and geographies currently and during the forecast period?
- Estimated forecast and market projections up to 2033.
- Which segment accounts for the fastest CAGR during the forecast period?
- Which market segment holds a larger market share and why?
- Are low and middle-income economies investing in the Insurance Fraud Detection market?
- Which is the largest regional market for Insurance Fraud Detection market?
- What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
- Which are the key trends driving Insurance Fraud Detection market growth?
- Who are the key competitors and what are their key strategies to enhance their market presence in the Insurance Fraud Detection market worldwide?
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Table of Contents
1. Preface
2. Executive Summary
3. Insurance Fraud Detection Market: Competitive Analysis
4. Insurance Fraud Detection Market: Macro Analysis & Market Dynamics
5. Insurance Fraud Detection Market: By Component, 2023-2033, USD (Million)
6. Insurance Fraud Detection Market: By Deployment Mode, 2023-2033, USD (Million)
7. Insurance Fraud Detection Market: By Application, 2023-2033, USD (Million)
8. Insurance Fraud Detection Market: By End-use Vertical, 2023-2033, USD (Million)
9. North America Insurance Fraud Detection Market, 2023-2033, USD (Million)
10. UK and European Union Insurance Fraud Detection Market, 2023-2033, USD (Million)
11. Asia Pacific Insurance Fraud Detection Market, 2023-2033, USD (Million)
12. Latin America Insurance Fraud Detection Market, 2023-2033, USD (Million)
13. Middle East and Africa Insurance Fraud Detection Market, 2023-2033, USD (Million)
14. Company Profile
List of Figures
List of Tables
Companies Mentioned
- ACI Worldwide, Inc.
- BAE Systems
- Accenture
- Experian Information Solutions, Inc.
- Fair Isaac Corporation (FICO)
- Fiserv, Inc.
- FRISS
- IBM Corporation
- TransUnion LLC
- Kount Inc.
- LexisNexis Risk Solutions
- Perceptiviti Data Solutions Pvt. Ltd.
- SAP SE
- SAS Institute Inc.
- Simility
- Software AG
- Uplexis