Insurance Analytics Market Report 2025

This Insurance Analytics market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The insurance analytics market size has grown rapidly in recent years. It will grow from $14.71 billion in 2024 to $16.74 billion in 2025 at a compound annual growth rate (CAGR) of 13.8%. The growth in the historic period can be attributed to increased data volume inThe insurance industry, regulatory compliance and reporting requirements, need for fraud detection and prevention, shift towards personalized insurance products, 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 $32.92 billion in 2029 at a compound annual growth rate (CAGR) of 18.4%. The growth in the forecast period can be attributed to adoption of advanced predictive modeling techniques, expansion of usage-based insurance models, growing emphasis on customer experience analytics, focus on cybersecurity and risk management analytics, rising competition in the insurance industry. Major trends in the forecast period include integration of artificial intelligence in analytics, real-time analytics for claims processing, telematics and iot for risk assessment, blockchain for transparent and efficient transactions, collaborative analytics for 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 rise in insurance fraud is expected to drive the growth of the insurance analytics market in the coming years. Insurance fraud involves intentionally deceiving an insurance company or agent to gain financial benefits, such as submitting false claims or providing misleading information to receive compensation or coverage that the individual or entity is not entitled to. Insurance analytics plays a crucial role in detecting and preventing fraud by analyzing large datasets to identify patterns and anomalies that may suggest fraudulent activities or claims. For example, in June 2024, the U.S. government reported that the Justice Department's 2024 National Health Care Fraud Enforcement Action charged 193 individuals, including 76 medical professionals, across 32 federal districts for their involvement in schemes aimed at $2.75 billion in intended losses. The operation resulted in the seizure of over $231 million in cash and assets. As a result, the increase in insurance fraud is fueling the growth of the insurance analytics market.

Technological innovation is a significant trend in the insurance analytics market. Leading companies in this sector are focusing on advancements such as the adoption of data visualization to improve decision-making, streamline operations, and enhance risk assessment by transforming complex data into clear, actionable insights. Data visualization, which represents information through visual elements like graphs or charts, simplifies the interpretation of intricate data for more effective analysis. For example, in May 2024, Aon plc, a UK-based insurance firm, introduced Aon's Property Risk Analyzer. This comprehensive risk assessment tool offers exposure visualization, loss modeling, and insurance structure testing, helping clients make more informed risk management decisions and explore different insurance and risk financing options. The tool improves data quality and enables a more strategic approach to managing property risks globally.

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 October 2022, Accenture, an Ireland-based IT firm, acquired Blackcomb Consultants for an undisclosed amount. The acquisition aims to strengthen Accenture's Guidewire solutions for property and casualty insurers, facilitating their digital transformation through cloud-based services. This partnership will enhance agility, utilize advanced technologies, and broaden innovative offerings on a global scale. Blackcomb Consultants, a US-based IT consulting company, specializes in using data analytics to improve decision-making in the insurance sector, with a focus on risk assessment and predictive modeling. This collaboration enables insurers to optimize their operations, boost customer satisfaction, and maintain regulatory compliance.

Major companies operating in the insurance analytics market include 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., Shift Technology SAS, Cover-All Technologies Inc., SAP SE, 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 2024. 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.

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 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.

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