What Is The Current and Historic Market Size Analysis Of The Artificial Intelligence AI For Insurance Market?
The artificial intelligence ai for insurance market has seen considerable growth due to a variety of factors.
• The market size for artificial intelligence (AI) in the insurance industry has seen exponential growth in recent times. It's projected to increase from $7.71 billion in 2024 to $10.27 billion in 2025, with a compound annual growth rate (CAGR) of 33.3%.
Several factors contribute to this growth during the historical period, including a surge in data within the insurance industry, improvements in risk assessment and underwriting, enhanced fraud detection and prevention methodologies, improved customer experiences, and more efficient operations leading to cost reductions.
What are the Market Size and Expected Growth Rates for the Artificial Intelligence AI For Insurance Market?
The artificial intelligence ai for insurance market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for AI in insurance is predicted to experience robust growth in the coming few years, reaching the size of $35.76 billion in 2029 with a CAGR of 36.6%.
The growth during the projected period is because of improvements in AI algorithms, the expansion of InsurTech landscape, increased attention to personalization, integration with IoT gadgets, and the changing scenario of cyber insurance. Major trends during this forecasted period include partnerships with ecosystem collaborators, ethical and understandable AI, automation of claim processing, enhancement of customer experiences, and flexible pricing strategies.
Which Key Drivers Are Propelling The Artificial Intelligence AI For Insurance Market's Growth?
The surge in investments within the insurance industry is predicted to boost the expansion of the artificial intelligence (AI) insurance market in the future. These investments typically involve the distribution of financial resources into various ventures or assets in hopes of generating revenue or profit in the long run. The focus of these investments in AI for insurance lie in research & development, technology advancement, data infrastructure, and talent scouting – a comprehensive strategy for providing innovative solutions to customers. The expected outcome is a fueled growth and acceptance of AI-driven solutions, as the transformative potential of AI is increasingly recognized by insurance companies. For instance, Swiss Re – an insurance firm based in Switzerland, reported in July 2023 that investment rates had seen an uptick from 6.2% in 2022 to 8.1% in 2023. Thus, the soaring investment in the insurance industry contributes to the upward trajectory of growth for the AI insurance market.
What Are The Key Segments Within The Global Artificial Intelligence AI For Insurance Market?
The artificial intelligence (AI) for insurance market covered in this report is segmented –
1) By Offering: Hardware, Software, Services
2) By Technology: Machine Learning, Natural Language Processing, Computer Vision, Other Technologies
3) By Application: Fraud Detection And Credit Analysis, Customer Profiling And Segmentation, Product And Policy Design, Underwriting And Claims Assessment
4) By End User: Life And Health Insurance, Property And Casualty Insurance
Subsegments:
1) By Hardware: AI Chips, Edge Devices
2) By Software: Machine Learning Platforms, Fraud Detection Software, Customer Service Automation Software, Risk Assessment Tools
3) By Services: Consulting Services, Integration Services, Managed Services, Support And Maintenance Services
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What New Trends Are Influencing The Artificial Intelligence AI For Insurance Market?
Leading corporations in the artificial intelligence (AI) for insurance market are prioritizing the creation of technologically superior solutions, like InsuranceGPT, to handle the intricate issues of the insurance industry. The purpose-built generative pre-trained transformer (GPT) tool, InsuranceGPT, offers insurers superior decision-making abilities for automated claims administration, ensuring privacy and data security in the process. For example, Simplifai AS, an AI company in Norway, launched Simplifai InsuranceGPT, a dedicated GPT tool for the insurance sector, in June 2023. The tool leverages improved decision-making for automated claims management, with a strong emphasis on privacy and data security. Salient features of the tool include effortless integration with existing systems, a security structure that requires no coding, training with insurance data for precision, and enhanced communication between insurance providers and their customers.
Who Are the Key Players In The Artificial Intelligence AI For Insurance Market?
Major companies operating in the artificial intelligence (AI) for insurance market report are:
• Amazon.com Inc.
• Google LLC
• Microsoft Corporation
• IBM Corporation
• Oracle Corporation
• SAP SE
• Salesforce Inc.
• Baidu Inc.
• Infosys Limited
• Wipro Products Limited
• OpenText Corporation
• SAS Institute Inc.
• Pegasystems Inc.
• Shift Technology
• VertaforeInc.
• Applied Systems
• Zego Inc.
• Acko General Insurance
• Tractable Ltd.
• SimpleFinance
• InsurifyInc.
• Avaamo Inc.
• Slice Insurance Technologies
• Quantemplate
• Cape Analytics LLC
What Are The Regional Insights Into The Artificial Intelligence AI For Insurance Market?
North America was the largest region in the artificial intelligence (AI) for insurance market in 2024. The regions covered in the artificial intelligence (AI) for insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
