What Has Been the Progress and Growth of the Insurance Analytics Market in Recent Years?
The insurance analytics market has seen considerable growth due to a variety of factors.
• In recent times, the size of the insurance analytics market has seen swift growth. It is projected to increase from a sum of $14.71 billion in 2024 to an estimated $16.74 billion in 2025, a compound,annual growth rate (CAGR) of 13.8%.
The growth witnessed in the previous years can be credited to factors such as an escalation in data volume within the insurance industry, regulations and reporting necessities, the requirement for fraud detection and prevention, the transition towards customized insurance products, as well as market dynamics and competitive stress.
What Can Be Expected from the Insurance Analytics Market in the Coming Years?
The insurance analytics market is expected to maintain its strong growth trajectory in upcoming years.
• In the forthcoming years, the insurance analytics market is slated to witness a significant expansion, culminating in a market size of $32.92 billion by 2029, exhibiting a compound annual growth rate (CAGR) of 18.4%.
This growth during the forecast period is likely to be spurred by factors such as the implementation of sophisticated predictive modeling techniques, broader application of usage-based insurance models, rising focus on customer experience and risk management analytics, as well as intense competition within the insurance sector. Key trends for the forecast period encompass the inclusion of artificial intelligence in analytics, the reliance on real-time analytics for claim processing, the application of telematics and IoT for risk assessment, employing blockchain for facilitating transparent and efficient transactions, and utilizing collaborative analytics to gain industry insights.
What Main Forces Are Fueling Expansion In The Insurance Analytics Market?
The surge in the insurance industry's digitization is playing a significant role in fueling the growth of the insurance analytics market. Automation, underwriting, risk scoring, and claims processing are some of the areas where digitization is actively applied in the insurance analytics market. The crucial role of digitization in this market lies in its capability to improve market penetration, expedite the resolution of queries and customer dashboards, and enhance the customer experience, among others. These stand as the primary drivers behind the industry's rapid shift towards digitization. To illustrate, KPMG, a professional services organization based in the Netherlands, conducted a survey revealing that 85% of insurance CEOs assert the COVID-19 pandemic has expedited their operations' digitization and the development of cutting-edge operating models. Furthermore, about eight in every ten (78%) state that it has supercharged advancements in the establishment of a smooth digital customer experience.
What Are The Primary Segments In The Global Insurance Analytics Market?
The insurance analytics market covered in this report is segmented –
1) By Component: Solution, Service
2) By Deployment Model: On premises, Cloud
3) By Enterprise Size: Large Enterprises, Small And Medium Enterprises (SMEs)
Subsegments:
1) By Solution: Risk Assessment And Management Tools, Claims Analytics Software, Underwriting Analytics Solutions, Customer Retention And Acquisition Analytics, Fraud Detection And Prevention Tools
2) By Service: Consulting Services, Implementation Services, Support And Maintenance Services, Training And Education Services
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Which Key Trends Are Driving Changes In The Insurance Analytics Market?
Trend 1 identifies technological innovation as a pivotal movement in the insurance analytics sector. Major stakeholders in this market are concentrating on progressing technologically by implementing data visualization, enabling enriched decision-making, smooth operations, and superior risk evaluation through transparent, practical insight from intricate data sets. Data visualization focuses on presenting data in visual formats such as charts or graphs, assisting in a simpler interpretation of complex data for improved analysis. As an example, in May 2024, Aon plc, an insurance firm based in the UK, introduced Aon's Property Risk Analyzer. This is a thorough risk evaluation tool that offers exposure visualization, loss modelling, and insurance structure testing to aid clients in making improved risk management decisions and investigating numerous insurance and risk financing avenues. It boosts data quality and encourages a more strategic method of property risk management globally.
Who Are the Key Players in the Insurance Analytics Market?
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
What Is The Most Dominant Region In The Insurance Analytics Market?
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
