Insurance Analytics Market Size, Share, Growth Analysis, By Component(Solution and Service), By Deployment(On premise and Cloud), By Enterprise size(large enterprises, small & medium enterprises), By End use(insurance companies, government agencies, and third-party administrators, brokers), By Region - Industry Forecast 2024-2031


Report ID: SQMIG45M2011 | Region: Global | Published Date: March, 2024
Pages: 197 |Tables: 59 |Figures: 77

Insurance Analytics Market Insights

Insurance Analytics Market size was valued at USD 10.65 billion in 2022 and is poised to grow from USD 11.92 billion in 2023 to USD 29.30 billion by 2031, at a CAGR of 11.9% during the forecast period (2024-2031). 

The adoption of these technologies is encouraged by the necessity for their use, their deployment, and the supply of integrated and value-added services to clients. Additionally, customers are more likely to seek online quotes and personalised insurance solutions from many providers around-the-clock, which is increasing competition among businesses in the sector. The market for insurance analytics is encouraged to expand as a result of this. According to recent research of 68 EMEA insurance companies, 85 to 90% of the companies struggle to see a compelling economic case for data analytics solutions. Insurance firms encounter a number of obstacles that keep them from utilising the full potential of data analytics solutions. Insurers feel pressured to act quickly in order to stay ahead of the competition or Ensures companies, but in order to benefit from these technologies, they will first require a strong Data Analytics competence. Additionally, to make purchasing life insurance online simpler and more affordable, life insurers in the US have increased their automated and streamlined underwriting procedures during the past several years. Such elements are promoting market growth trend acceptance.

US Insurance Analytics Market is poised to grow at sustainable CAGR for the next forecast year.

Market Snapshot - 2024-2031

Global Market Size

USD 10.65 billion

Largest Segment

Solution

Fastest Growth

Service

Growth Rate

11.9% CAGR

Global Insurance Analytics Market ($ Bn)
Country Share for North America Region (%)

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Insurance Analytics Market Segmental Analysis

Global Insurance Analytics Market is segmented on the basis of component, deployment, enterprise size, end use and region. By component, the market is segmented into solution and service. By deployment, the market is segmented into on-premise and cloud. By enterprise size, the market is segmented into large and small & medium enterprise. By end use, the market is segmented into insurance companies, government agencies, third party administrators, brokers & consultancies. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Insurance Analytics Market Analysis by Enterprise size 

On the basis of enterprise size, the market has been segmented into large enterprises and small & medium enterprises. Many large-scale enterprises focus on implementing insurance analytics to improve customer loyalty and minimize overall infrastructure costs. Furthermore, insurance analytics tools allow large enterprises to meet the changing government regulations and standards set forth by HIPAA, Payment Card Industry Data Security Standard, and Federal Government. This is anticipated to drive the segment growth. 

Insurers require a substantial amount of information. Leveraging insurance analytics, these companies can collect and analyze structured data associated with policy holders and unstructured data from public sources, such as social media. The analytics tool also allows large enterprises to generate simple and more transparent products. In addition, the analytics tool enables large enterprises to predict customer behavior and obtain insights to develop personalized policies, which results in improved customer satisfaction. 

Insurance Analytics Market Analysis by End use 

On the basis of end use, the market is segmented into insurance companies, government agencies, and third-party administrators, brokers, & consultancies. The insurance companies segment dominated the market in 2019. Increasing demand for insurance services and critical fiscal year report force companies to opt for advanced analytics tools. The propagation of third-party data sources eliminates insurers’ dependence on internal data. Data obtained from smartphones, social media analytics, computers, and other industrial and consumer devices has become a main source for behavioral insights for the insurer.

Global Insurance Analytics Market By Component

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Insurance Analytics Market Regional Insights

During the projection period, North America is expected to increase at a CAGR of 13%, contributing the most revenue. Aiming to decrease possible hazards for policyholders, insurers are adopting analytical techniques to provide early insights. Furthermore, in order to produce correct results for decision-making, these sophisticated analytical tools necessitate thorough processing and intensive data investigation. Because of these reasons, the market in the area is growing quickly. Additionally, the market for insurance analytics is expected to increase significantly as a result of technical developments and investments in advanced analytics in the insurance industry. In North America, however, there is a chance for the insurance analytics business to expand due to national and regional rules that regulate insurers and general data use.

The region that is expanding the fastest is Asia-Pacific. In addition, numerous governments in the Asia-Pacific region are promoting & aiding the insurance sector by putting in place cutting-edge analytical tools & increasing the profitability of their company operations. The Asia-Pacific is also expected to expand quicker due to its quick use of insurance technologies. Aside from that, the region's robust economic development, quick digitalization, and widespread use of cloud services present numerous potentials for market expansion.

Global Insurance Analytics Market By Region
  • Largest
  • Fastest

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Insurance Analytics Market Dynamics

Insurance Analytics Market Drivers

Increasing demand for data-driven decision-making

  • Insurers are increasingly recognizing the value of data analytics in making informed decisions. By leveraging advanced analytics techniques, insurers can gain valuable insights into customer behavior, risk assessment, fraud detection, and pricing optimization. This demand for data-driven decision-making is driving the adoption of insurance analytics solutions.

Growing volumes of data

  • The insurance industry generates vast amounts of data from various sources such as customer interactions, policy data, claims data, and external data sources. With the advent of technologies such as the Internet of Things (IoT) and telematics, insurers have access to even more data from devices and sensors. Insurance analytics enables insurers to harness this data effectively and derive actionable insights.

Insurance Analytics Market Restraints

Data quality and integration challenges

  • Insurance companies often face challenges in managing and integrating data from various sources, including legacy systems, third-party providers, and external data sources. Inaccurate or incomplete data can undermine the effectiveness of insurance analytics solutions, leading to flawed insights and decision-making. Data quality issues and the complexities of data integration pose significant restraints to the adoption and success of insurance analytics.

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Insurance Analytics Market Competitive Landscape

For the purpose of creating new products and improving existing ones, industry participants increase their R&D spending. In order to improve their position in the market, businesses are also implementing methods like mergers and acquisitions, concordances, and partnerships. By making the acquisition, the former business was able to increase its market share.

Insurance Analytics Market Top Player’s Company Profiles

  • IBM Corporation (United States)
  • Verisk Analytics, Inc. (United States)
  • TIBCO Software Inc. (United States)
  • Salesforce.com, Inc. (United States)
  • Guidewire Software, Inc. (United States)
  • Microsoft Corporation (United States)
  • Accenture plc (Ireland)
  • Tableau Software (United States)
  • QlikTech International AB (Sweden)
  • MicroStrategy Incorporated (United States)
  • FICO (Fair Isaac Corporation) (United States)
  • Pegasystems Inc. (United States)
  • LexisNexis Risk Solutions (United States)
  • OpenText Corporation (Canada)
  • Cognizant Technology Solutions Corporation (United States)
  • Deloitte Touche Tohmatsu Limited (United States)
  • WNS Global Services (India)
  • ExlService Holdings, Inc. (United States)
  • Palantir Technologies Inc. (United States)

Insurance Analytics Market Recent Developments

  • In March 2024, Tensorflight, a property intelligence platform, revealed a partnership with NEXT Insurance, a prominent technology-focused insurer for small businesses, to streamline commercial property inspections through automation. 

  • In January 2024, Akur8, renowned for its advanced insurance pricing solution driven by transparent machine learning, disclosed a strategic collaboration with Ohio Mutual Insurance Group. 

  • In November 2023, Greater Than announced that its acclaimed artificial intelligence (AI) software has empowered ABAX to introduce a new autonomous car insurance broker brand. 

Insurance Analytics Key Market Trends

Adoption of advanced analytics techniques

  • Insurance companies are increasingly adopting advanced analytics techniques such as machine learning, artificial intelligence, natural language processing, and predictive modelling. These techniques enable insurers to extract insights from large volumes of data, automate processes, and make data-driven decisions. The adoption of advanced analytics is driving the transformation of traditional insurance operations and enhancing customer experience.

Insurance Analytics Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.

According to our analyses, the global insurance analytics market is experiencing significant growth and transformation driven by various factors such as the increasing demand for data-driven decision-making, growing volumes of data, the need for effective risk management, customer-centricity, the rise in fraudulent activities, technological advancements, and regulatory compliance requirements. Insurance analytics solutions enable insurers to leverage advanced analytics techniques, including machine learning, artificial intelligence, predictive modelling, and data visualization, to extract insights from diverse data sources. By analysing customer data, claims data, underwriting data, and market data, insurers can gain valuable insights to enhance risk assessment, improve underwriting processes, personalize offerings, detect and prevent fraud, and optimize pricing strategies.

Report Metric Details
Market size value in 2022 USD 10.65 billion
Market size value in 2031 USD 29.30 billion
Growth Rate 11.9%
Base year 2023
Forecast period 2024-2031
Forecast Unit (Value) USD Billion
Segments covered
  • Component
    • Solution and Service
  • Deployment
    • On premise and Cloud
  • Enterprise size
    • large enterprises, small & medium enterprises
  • End use
    • insurance companies, government agencies, and third-party administrators, brokers, & consultancies
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • IBM Corporation (United States)
  • Verisk Analytics, Inc. (United States)
  • TIBCO Software Inc. (United States)
  • Salesforce.com, Inc. (United States)
  • Guidewire Software, Inc. (United States)
  • Microsoft Corporation (United States)
  • Accenture plc (Ireland)
  • Tableau Software (United States)
  • QlikTech International AB (Sweden)
  • MicroStrategy Incorporated (United States)
  • FICO (Fair Isaac Corporation) (United States)
  • Pegasystems Inc. (United States)
  • LexisNexis Risk Solutions (United States)
  • OpenText Corporation (Canada)
  • Cognizant Technology Solutions Corporation (United States)
  • Deloitte Touche Tohmatsu Limited (United States)
  • WNS Global Services (India)
  • ExlService Holdings, Inc. (United States)
  • Palantir Technologies Inc. (United States)
Customization scope

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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Insurance Analytics Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Insurance Analytics Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Insurance Analytics Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Insurance Analytics Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Insurance Analytics Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Insurance Analytics Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

Insurance Analytics Market size was valued at USD 10.65 billion in 2022 and is poised to grow from USD 11.92 billion in 2023 to USD 29.30 billion by 2031, at a CAGR of 11.9% during the forecast period (2024-2031). 

For the purpose of creating new products and improving existing ones, industry participants increase their R&D spending. In order to improve their position in the market, businesses are also implementing methods like mergers and acquisitions, concordances, and partnerships. By making the acquisition, the former business was able to increase its market share. 'IBM Corporation (United States)', 'Oracle Corporation (United States)', 'SAP SE (Germany)', 'SAS Institute Inc. (United States)', 'Verisk Analytics, Inc. (United States)', 'TIBCO Software Inc. (United States)', 'Salesforce.com, Inc. (United States)', 'Guidewire Software, Inc. (United States)', 'Microsoft Corporation (United States)', 'Accenture plc (Ireland)', 'Tableau Software (United States)', 'QlikTech International AB (Sweden)', 'MicroStrategy Incorporated (United States)', 'FICO (Fair Isaac Corporation) (United States)', 'Pegasystems Inc. (United States)', 'LexisNexis Risk Solutions (United States)', 'OpenText Corporation (Canada)', 'Cognizant Technology Solutions Corporation (United States)', 'Deloitte Touche Tohmatsu Limited (United States)', 'WNS Global Services (India)', 'ExlService Holdings, Inc. (United States)', 'Palantir Technologies Inc. (United States)'

Insurers are increasingly recognizing the value of data analytics in making informed decisions. By leveraging advanced analytics techniques, insurers can gain valuable insights into customer behavior, risk assessment, fraud detection, and pricing optimization. This demand for data-driven decision-making is driving the adoption of insurance analytics solutions.

Insurance companies are increasingly adopting advanced analytics techniques such as machine learning, artificial intelligence, natural language processing, and predictive modelling. These techniques enable insurers to extract insights from large volumes of data, automate processes, and make data-driven decisions. The adoption of advanced analytics is driving the transformation of traditional insurance operations and enhancing customer experience.

During the projection period, North America is expected to increase at a CAGR of 13%, contributing the most revenue. Aiming to decrease possible hazards for policyholders, insurers are adopting analytical techniques to provide early insights. Furthermore, in order to produce correct results for decision-making, these sophisticated analytical tools necessitate thorough processing and intensive data investigation. Because of these reasons, the market in the area is growing quickly. Additionally, the market for insurance analytics is expected to increase significantly as a result of technical developments and investments in advanced analytics in the insurance industry. In North America, however, there is a chance for the insurance analytics business to expand due to national and regional rules that regulate insurers and general data use.

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