The insurance claims services market size has seen rapid growth in recent years, anticipated to expand from $163.49 billion in 2023 to $184.93 billion in 2024, with a compound annual growth rate (CAGR) of 13.1%. The historical growth in this sector can be attributed to the increasing acceptance of insurance services, rising literacy levels, a growing prevalence of theft and vandalism, an increase in chronic disease occurrences, and a rising demand for mobile applications. The market size is expected to reach $309.70 billion in 2028, with a CAGR of 13.4%. The projected growth in the forecast period can be linked to a growing number of accidents, an increasing volume of health insurance claims, rising disposable incomes, heightened awareness of risk management, and growing demand for customer-centric services. Major trends shaping this sector include advanced technologies, innovation in service offerings, predictive analytics for claims handling, the incorporation of artificial intelligence (AI) and machine learning (ML), and cloud-based solutions.
Major Driver In The Insurance Claims Services Market
The increasing incidence of road accidents is anticipated to stimulate growth in the insurance claim services market in the future. The rise in road accidents can be attributed to urbanization, which leads to higher traffic volumes, as well as lifestyle changes, environmental conditions, and distracted driving. Insurance claim services are essential for arranging the repair or replacement of damaged vehicles or property, enabling policyholders to resume their normal activities promptly. For example, in October 2023, the Road Safety Charity in the UK reported a 10% increase in road accident deaths, totaling 1,766 in 2022, with 1,711 fatalities occurring in Britain and 55 in Northern Ireland. This rising incidence of accidents will continue to drive the insurance claim services market, which is projected to reach $4.3 billion in 2023, $5 billion in 2024, and $7 billion by 2028.
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Insurance Claims Services Market Competitive Landscape
Major companies operating in the insurance claims services market are Accenture PLC, International Business Machines Corporation, Oracle Corporation, KPMG International Limited, Capgemini SE, Cognizant Technology Solutions, DXC Technology Company, Concentrix Corporation, Gartner Inc. , Genpact Ltd., Conduent Inc., Sutherland Global Services Inc., Exlservice Holdings Inc. , Pegasystems Inc., World Network Service(WNC) Holdings Limited, Flatworld Solutions Private Limited, Software AG, Guidewire Software Inc., Hexaware Technologies Limited, Sapiens International Corporation N.V.
Key Insurance Claims Services Market Trend
Major companies in the insurance claims services market are concentrating on integrating generative artificial intelligence (AI) to streamline claims processing, improve customer service, and enhance overall efficiency. Generative AI automates routine tasks, such as data entry and claims verification, thereby speeding up the claims processing cycle and minimizing manual errors. By utilizing AI-driven chatbots and virtual assistants, these companies enhance customer service through prompt and personalized responses. For instance, in June 2023, Simplifai, an India-based automation company, launched Simplifai InsuranceGPT, a custom-built generative AI tool specifically designed for the insurance industry. Powered by Simplifai's no-code AI platform, this tool aims to improve decision-making in automated claims management while ensuring data privacy and security. It assists in claims settlement by providing insights based on legal precedents and historical decisions.
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Global Insurance Claims Services Market Segmentation
The insurance claims services market covered in this report is segmented –
1) By Type Of Insurance: Life Insurance Claims, Health Insurance Claims, Motor Insurance Claims, Property And Casualty Insurance Claims
2) By Insurance Providers: Insurance Companies, Third-Party Administrators (TPAs), Specialized Claims Management Firms
3) By End-User: Individual Policyholders, Commercial Policyholders, Government And Public Sector
By Geography:The regions covered in the insurance claims services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
North America was the largest region in the insurance claims services market in 2023.
The Insurance Claims Services Global Market Report 2024 furnishes information about the global insurance claims services market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
