Insurance Analytics Market is Expected to Reach $22.45 Billion By 2027

According to a recent report published by Allied Market Research, titled, “Insurance Analytics Market By Component, Deployment Type, Enterprise Size, Application, and End User: Global Opportunity Analysis And Industry Forecast, 2020-2027”. The global insurance analytics market size was valued at $7.91 billion in 2019, and is projected to reach $22.45 billion by 2027, growing at a CAGR of 14.2% from 2020 to 2027.

Insurance analytics is the use of data analytics by companies providing insurance products in the market. It helps insurance companies in assisting customer behavior and further analyzing demand for different insurance products, which are quoted by customers online. In addition, insurance analytics solutions help insurance companies generate leads on the basis of availability of unstructured data available on web.

For instance, in January 2021, Willis Towers Watson, which is a leading global advisory, broking & solutions company stated that more than two-thirds of insurers used predictive analytics in insurance to reduce issues & underwriting expenses and 60% companies were benefitted with increase in sales and profitability.

Factors such as rise in adoption of advance technology and increase in competition in the insurance sector are major factors that drive growth of the insurance analytics market. Conversely, surge in fraudulent activities and untapped potential of emerging economies are expected to provide lucrative opportunities for insurance analytics solution providers in the coming years.

On the basis of deployment type, the cloud segment is the fastest growing segment in 2019, and is projected to maintain its dominance during the forecast period. Moreover, cloud deployment is a subscription-based service, which enables enterprises or organizations to utilize power of data analytics, which is propels the insurance analytics market growth.

On the basis of application, the risk management segment dominated the insurance analytics market in 2019, and is projected to maintain its dominance during the forecast period. This is attributed to the fact that by using insurance analytics solutions, it helps insurance companies to reduce price for claim settlement as well as protecting customers from various risks. This factors, as a result accelerates growth of insurance analytics in the risk management segment. 

By region, the global insurance analytics market was dominated by North America in 2019, and is expected to maintain this trend during the forecast period. In addition, owing to increase in awareness of insurance analytics among insurance companies and surge in technological advancements propel growth of the insurance analytics market in this region. However, Asia-Pacific is expected to grow at the fastest CAGR during the forecast period as several insurance companies are adopting advance analytical technologies to boost business efficiency, lowering compliance risk exposure, and increasing policy sales in the region.  

Insurance analytics industry has experienced significant impact on premium growth, owing to imposition of lockdowns & shutdowns, several regulatory changes in existing frameworks took place. Therefore, owing to change in consumer behavior toward availing insurance services, companies across major countries are implementing secured analytical insurance technologies & providing safe & secured insurance services in the market. Therefore, rise in adoption of advance analytics technologies and increase in investments toward analytics software among insurance companies are major factors that drive the market growth during. 

Key Findings Of The Study

• By deployment type, the on-premise segment led the insurance analytics market size, in terms of revenue in 2019.
• By application, the risk management segment accounted for the highest insurance analytics market share in 2019.
• By region, North America generated the highest revenue in 2019.

The key players profiled in the Insurance Analytics market analysis are Applied Systems, IBM Corp., Microsoft, Open Text Corporation, Oracle, Pegasystems Inc., salesforce.com inc., SAP SE, SAS Institute Inc., and Vertafore, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.