Insurance Fraud Detection Global Market Report 2024

Insurance fraud detection is a method aimed at identifying and preventing fraudulent activities related to money or insurance. Various software-based solutions are employed to analyze historical patterns and incidents, predicting and preventing future occurrences. Organizations utilize insurance fraud detection for fraud analytics, authentication, governance, risk management, and compliance to safeguard databases and identify vulnerabilities.

The primary deployment types of insurance fraud detection are on-premises and cloud. On-premises insurance fraud detection involves software that is implemented and activated on computers located on the premises of the individual or using the software, rather than at a distant facility like a server farm or cloud. The components of insurance fraud detection include solutions and services, catering to both small and medium-sized enterprises (SMEs) and large enterprises. Applications of insurance fraud detection encompass claims fraud, identity theft, payment and billing fraud, and money laundering. These applications find use across various end-users such as insurance companies, insurance intermediaries, agents and brokers, and other entities.

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

The insurance fraud detection market size has grown exponentially in recent years. It will grow from $6.23 billion in 2023 to $7.66 billion in 2024 at a compound annual growth rate (CAGR) of 22.8%. The expansion observed during the historical period can be attributed to factors such as the increasing instances of insurance fraud, the complexity of fraud schemes, regulatory compliance requirements, customer demand for security, and the globalization of insurance markets.

The insurance fraud detection market size is expected to see exponential growth in the next few years. It will grow to $18.04 billion in 2028 at a compound annual growth rate (CAGR) of 23.9%. The anticipated growth in the forecast period can be attributed to factors such as global data sharing platforms, regulatory emphasis on fraud prevention, insider threat detection, enhanced identity verification, and increased cybersecurity measures. Key trends expected in the forecast period include the rise of advanced analytics and machine learning, collaboration with insurtech companies, a focus on real-time fraud prevention, an emphasis on digital identity verification, the use of geospatial data for risk assessment, and a continued focus on regulatory compliance and reporting.

The growth of the insurance fraud detection market is anticipated to be driven by the increasing frequency of cyberattacks. Cyberattacks, deliberate and dangerous attempts to access an individual's or organization's data, pose a significant threat to insurance companies due to their extensive collection of personal policyholder data. Insurers, unlike many other industries, not only handle sensitive financial data but also amass a considerable volume of protected personal sensitive information. As reported by the Anti-Phishing Working Group in June 2022, the first quarter of 2022 witnessed a 15% increase in phishing attacks compared to the previous quarter, emphasizing the heightened risk. This surge in cyberattacks is a pivotal factor propelling the growth of the insurance fraud detection market.

The escalating instances of insurance frauds are expected to further contribute to the expansion of the insurance fraud detection market. Insurance fraud involves intentionally deceiving or misleading insurance companies for financial gain through false claims or misrepresentation. Effective insurance fraud detection is crucial for upholding the integrity of the insurance industry, preventing financial losses, and ensuring that legitimate claimants receive rightful benefits. The Insurance Fraud Enforcement Department reported a substantial 61% surge in insurance fraud in the UK, attributed in part to the cost-of-living crisis, underscoring the need for robust fraud detection measures. This rise in various insurance frauds is poised to fuel the growth of the insurance fraud detection market.

A prominent trend in the insurance fraud detection market is the adoption of technological advancements. Companies are introducing innovative solutions with upgraded technologies to enhance the monitoring and identification of insurance fraud claims. Crawford & Company, for example, launched the Crawford Intelligent Fraud Detection solution in December 2021. This solution, utilizing DXC Luxoft's Financial Crimes Intelligence platform and IBM collaboration, combines human expertise with forensic analysis and artificial intelligence to improve the detection and management of fraudulent claims.

Major players in the insurance fraud detection market are focusing on product innovation to improve the accuracy and efficiency of identifying fraudulent insurance claims, ultimately minimizing financial losses for insurers. Innovative products in this field leverage advanced data analytics, cloud technology, artificial intelligence, and machine learning to proactively identify and mitigate fraudulent activities within the insurance industry. An illustration of this is Verisk's launch of ClaimSearch, a cloud-based system designed to combat insurance fraud in Israel. ClaimSearch utilizes advanced analytics and data inputs from the local insurance industry to transform anti-fraud efforts in the country.

In February 2022, Charles Taylor InsureTech acquired the majority share of Fraud Keeper, a UK-based company specializing in detecting, preventing, mitigating, and managing fraudulent transactions in the insurance sector. This acquisition is expected to enable Fraud Keeper to expand its proven technology to new markets and client situations globally, aligning with Charles Taylor's counter-fraud strategy and specialist investigation services.

Major companies operating in the in the insurance fraud detection market report are ACI Worldwide Inc., BAE Systems PLC, BRIDGEi2i Analytics Solutions Pvt. Ltd., Datawalk Inc., DXC Technology Co., Experian PLC, Fair Isaac Corp., Fiserv Inc., FRISS Inc., International Business Machines Corporation, iovation Inc., Kount Inc., Relx Group, Oracle Corp., SAP SE, SAS Institute Inc., Scorto Inc., TransUnion LLC, Wipro Ltd., Accenture plc, Equifax Inc., Perceptiviti Inc, Shift Technology S. A., Verisk Analytics, Inc., Mody Data Solution Pvt. Ltd., Pixalate, Inc., Skopenow Inc., Owl Cyber Defense Solutions, LLC, Sigma Insights Inc., Fraud Guard LLC

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

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

The insurance fraud detection includes revenues earned by entities by statistical data analysis services, multi-layered process, behavioral biometrics services, adaptive and predictive analytics servies. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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.


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