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The insurance analytics market size is projected to increase by USD 13.14 billion, at a CAGR of 15.96% between 2023 and 2028. The growth rate of the market depends on several factors, including the increasing government regulations on mandatory insurance coverage in developing countries, the increasing availability of big data tools, and the growing need for insurers to make data-driven decisions. Insurance analytics involves the use of data analysis and statistical techniques to gain insights into the insurance industry. It helps insurers make informed decisions, assess risks, detect fraudulent activities, and enhance overall operational efficiency. This technology leverages data from various sources, including customer information, claims data, and market trends, to optimize underwriting, pricing, and claims processing activities.
The report includes a comprehensive outlook on the Insurance Analytics Market, offering forecasts for the industry segmented by Deployment, which comprises cloud and on-premises. Additionally, it categorizes Component into tools and services and covers Regions, including North America, Europe, APAC, Middle East and Africa, and South America. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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Increasing government regulations on mandatory insurance coverage in developing countries is the key factor driving market growth. Third-party motor insurance is compulsory for vehicles that run on public roads in some countries. For example, anyone who owns or operates a vehicle in the state of Maine in the US must have at least the minimum amount of insurance required by law. Similarly, health insurance is mandatory in most developed countries. Travel insurance is mandatory for a person traveling to a foreign country (in most developed countries).
Furthermore, the travel Insurance industry is expected to grow at a rapid pace due to the increase in cross-country tourism. The health insurance analytics industry is growing slowly in developing countries because of the increased awareness about the importance of having health insurance. As a result, the growth of various types of insurance is resulting in the rapid expansion of the global insurance analytics market.
Increasing adoption of insurance in developing countries is the primary trend shaping market growth. The market is currently expanding at a fast pace because of the increasing awareness about the importance of insurance. Emerging markets, mainly China and India, are expected to contribute to the rapid growth of the insurance industry.
In addition, the digital transformation in the insurance industry has resulted in a rapid increase in the demand for upgraded customer-facing insurance analytics solutions. With the increasing demand for insurance in developing countries, the demand for insurance analytics is also growing at a fast pace. Traditional methods of insurance are not favored anymore.
The complexity of integrating diverse data sources is a challenge that affects market growth. Insurers often deal with vast amounts of data generated by various channels, and integrating this data seamlessly can be complex and complicated. Standardizing data formats, ensuring data quality, and establishing interoperability between different systems are crucial aspects. Overcoming these integration challenges is essential for insurers to harness the full potential of analytics and derive meaningful insights from the diverse datasets available to them.
Furthermore, the insurance sector is a heavily regulated industry, and data use and integration must comply with various regional and industry-specific regulations. Ensuring adherence to compliance standards adds complexity to the overall integration process. In addition, inaccuracies or inconsistencies can lead to flawed insights and decisions.
The market share growth by the cloud segment will be significant during the forecast period. Cloud-based insurance analytics refers to the use of cloud computing services to store, analyze, and process insurance-related data. By leveraging cloud platforms, insurers can benefit from enhanced scalability, flexibility, and accessibility. This enables the efficient handling of large datasets, faster analytics processing, and the ability to access insights from virtually anywhere.
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The cloud segment showed a gradual increase in the market share of USD 3.87 billion in 2018. The inherent ease of use, cost-effectiveness, agility, and innovation of the cloud-based deployment model encourage SMEs and large organizations to adopt cloud-based solutions for all non-core operations and customer-facing applications. This trend is expected to drive the demand for cloud-based insurance analytics during the forecast period.
The tools component of insurance analytics encompasses a range of software and technologies that are designed to collect, process, analyze, and visualize data within the insurance industry. In addition, they help streamline the process of collecting and combining data from various systems, databases, and sources. The effective utilization of the various tools enables insurance companies to extract meaningful insights, optimize processes, improve customer experiences, and stay competitive in the rapidly evolving landscape of insurance analytics.
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North America is estimated to contribute 33% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. With the insurance industry in the region witnessing a steady revenue flow, several technology-driven innovations are expected to be implemented. This is expected to create a demand for insurance analytics. In addition, other key factors propelling the growth are the highly industrialized economy in several countries like the US and Canada and the significant use of the Internet for payments and data transactions within or between organizations.
Furthermore, organizations in this region are increasing their spending on advanced solutions to remain competitive in the market since the dependence on the Internet, wireless technologies, and cloud-based services is high in North America. Technologies such as AI and big data are gaining high traction among end-user industries.
Insurance Analytics Market forecasts include the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their insurance analytics market growth and trends strategies.
Global Insurance Analytics Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The Insurance Analytics Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Insurance Analytics Market market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The insurance analytics market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028
Insurance Analytics Market Scope |
|
Report Coverage |
Details |
Page number |
159 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.96% |
Market Growth 2024-2028 |
USD 13.14 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
15.23 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 33% |
Key countries |
US, China, India, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Applied Systems Inc., Capgemini Service SAS, Cognizant Technology Solutions Corp., Deloitte Touche Tohmatsu Ltd., Guidewire Software Inc., International Business Machines Corp., Majesco, MicroStrategy Inc., Oracle Corp., Pegasystems Inc., QlikTech international AB, RELX Plc, Roper Technologies Inc., Salesforce Inc., SAP SE, SAS Institute Inc., TIBCO Software Inc., Verisk Analytics Inc., WNS Holdings Ltd., and Ernst and Young Global Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data you are looking for, you can reach out to our analysts and get customized segments. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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