The AI for insurance market is projected to witness a CAGR of 33.16% during the forecast period to reach a total market size of US$11.923 billion by 2029, up from US$2.848 billion in 2024.
Artificial Intelligence (AI) is increasingly penetrating the insurance industry, with insurers applying multiple AI solutions across their business. It is utilized in the automation of underwriting, i.e., to help insurers make more accurate decisions on whether they should insure an individual or entity and what kind of premium should be charged for each policy or form of coverage sought.
This black box decision-making process has the potential to save millions and reduce truly fraudulent claims by identifying them right from the start. AI algorithms can ingest data from multiple resources like social media posts, financial statements, and patient medical records, and based on the data, they can compute the risk of insuring a particular policy.
Additionally, the solution can process large data volumes associated with claims history and policyholder behavior to identify certain patterns indicative of fraud. Many insurance organizations deploy chatbots and virtual agents for a self-serviceable experience of the policy that customers have purchased. For instance, it can allow customers to access their policy details, raise a claim, make/receive payments, and help with any FAQs around the clock.
Blockchain, another technology becoming a buzzword for providing secure and trusted transaction record-keeping, is also gaining a focus in this sector. This process can aid insurance companies in protecting data privacy and security, eliminating traditional administrative burdens and costs, increasing transparency and efficiency, etc., leading to a rise in market expansion.
Moreover, it can also be employed to detect insurance fraud. AI algorithms can verify a policyholder's driving behaviors against those stated in the application, such as information retrieved from a telematics device. AI algorithms can analyze this data and look for patterns associated with fraud, leading insurance companies to utilize the right method to protect themselves and increase transparency for better functioning.
The economic prosperity surrounding this region has enabled companies to invest billions of dollars in AI, purchasing and acquiring top talent worldwide who are building AI initiatives. This is resulting in regional insurance companies staying ahead of the curve. For instance, one of the largest insurance firms in North America, Allstate, employs AI for enhanced operations and customer experiences. Allstate is leveraging AI to analyze customer data and deliver personalized insurance services.
Additionally, most of the world's top insurance firms are headquartered in this region, and these firms have made huge contributions to AI in insurance growth and increased people's acceptance of AI in this sector. Thus, the regional players are realizing the value of AI in their operational backyards, talking to customers and buying AI tech.
Artificial Intelligence (AI) is increasingly penetrating the insurance industry, with insurers applying multiple AI solutions across their business. It is utilized in the automation of underwriting, i.e., to help insurers make more accurate decisions on whether they should insure an individual or entity and what kind of premium should be charged for each policy or form of coverage sought.
This black box decision-making process has the potential to save millions and reduce truly fraudulent claims by identifying them right from the start. AI algorithms can ingest data from multiple resources like social media posts, financial statements, and patient medical records, and based on the data, they can compute the risk of insuring a particular policy.
Additionally, the solution can process large data volumes associated with claims history and policyholder behavior to identify certain patterns indicative of fraud. Many insurance organizations deploy chatbots and virtual agents for a self-serviceable experience of the policy that customers have purchased. For instance, it can allow customers to access their policy details, raise a claim, make/receive payments, and help with any FAQs around the clock.
Blockchain, another technology becoming a buzzword for providing secure and trusted transaction record-keeping, is also gaining a focus in this sector. This process can aid insurance companies in protecting data privacy and security, eliminating traditional administrative burdens and costs, increasing transparency and efficiency, etc., leading to a rise in market expansion.
AI FOR INSURANCE MARKET DRIVERS:
- The growing adoption of AI technology in telematics and IoT devices is predicted to boost the demand for AI in insurance globally.
Moreover, it can also be employed to detect insurance fraud. AI algorithms can verify a policyholder's driving behaviors against those stated in the application, such as information retrieved from a telematics device. AI algorithms can analyze this data and look for patterns associated with fraud, leading insurance companies to utilize the right method to protect themselves and increase transparency for better functioning.
AI for Insurance Market Geographical Outlook:
- The North American region is predicted to dominate the AI for insurance market share.
The economic prosperity surrounding this region has enabled companies to invest billions of dollars in AI, purchasing and acquiring top talent worldwide who are building AI initiatives. This is resulting in regional insurance companies staying ahead of the curve. For instance, one of the largest insurance firms in North America, Allstate, employs AI for enhanced operations and customer experiences. Allstate is leveraging AI to analyze customer data and deliver personalized insurance services.
Additionally, most of the world's top insurance firms are headquartered in this region, and these firms have made huge contributions to AI in insurance growth and increased people's acceptance of AI in this sector. Thus, the regional players are realizing the value of AI in their operational backyards, talking to customers and buying AI tech.
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Industry and Market Insights, Opportunity Assessment, Product Demand Forecasting, Market Entry Strategy, Geographical Expansion, Capital Investment Decisions, Regulatory Framework & Implications, New Product Development, Competitive IntelligenceReport Coverage:
- Historical data & forecasts from 2022 to 2029
- Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
- Competitive Positioning, Strategies, and Market Share Analysis
- Revenue Growth and Forecast Assessment of segments and regions including countries
- Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)
Market Segmentation:
The AI for Insurance Market is segmented and analyzed as below:- By Application
- Fraud Detection
- Risk Analysis
- Customer Service
- Claims Assessment
- Others
- By Sector
- Life Insurance
- Health Insurance
- Title Insurance
- Others
- By Technology
- Deep Learning
- Machine Learning
- Robotic Automation
- Others
- By Geography
- North America
- USA
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Others
- Europe
- Germany
- France
- United Kingdom
- Spain
- Others
- Middle East and Africa
- Saudi Arabia
- UAE
- Israel
- Others
- Asia Pacific
- China
- Japan
- India
- South Korea
- Indonesia
- Taiwan
- Others
- North America
Table of Contents
1. INTRODUCTION
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
5. AI FOR INSURANCE MARKET BY APPLICATION
6. AI FOR INSURANCE MARKET BY SECTOR
7. AI FOR INSURANCE MARKET BY TECHNOLOGY
8. AI FOR INSURANCE MARKET BY GEOGRAPHY
9. COMPETITIVE ENVIRONMENT AND ANALYSIS
10. COMPANY PROFILES
Companies Mentioned
Some of the key companies profiled in this Artificial Intelligence (AI) for Insurance Market report include:- Amelia US LLC
- Microsoft Corporation
- Amazon Web Services Inc.
- IBM Corporation
- Avaamo Inc.
- Cape Analytics LLC
- Wipro Limited
- Acko General Insurance
- Shift Technology
- BIMA
Methodology
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Table Information
Report Attribute | Details |
---|---|
No. of Pages | 150 |
Published | September 2024 |
Forecast Period | 2024 - 2029 |
Estimated Market Value ( USD | $ 2.85 billion |
Forecasted Market Value ( USD | $ 11.92 billion |
Compound Annual Growth Rate | 33.1% |
Regions Covered | Global |
No. of Companies Mentioned | 10 |