Social Media Analytics-Based Insurance Market Expected to Reach $33.0 Billion by 2031

According to a new report published by Allied Market Research, titled, “Social Media Analytics-Based Insurance Market," The social media analytics-based insurance market size was valued at $3.5 billion in 2021, and is estimated to reach $33.0 billion by 2031, growing at a CAGR of 25.5% from 2022 to 2031.

Insurance businesses are constrained to rely on data, the capacity to gather, record, decode, and act on data is improving because external signals have the potential to affect decision-making. In addition, insurance companies from all over the world are utilising social media analytics to get useful information about how customers feel and to expand their service and product offerings. However, social media analytics is still in its infancy and is currently being majorly used by large insurance corporations, because of the high costs. However, when it comes to social media analytics, SMEs are also looking for less expensive options and as a result, cloud adoption is expected to drive the growth of the social media analytics-based insurance market during the forecast period.

Furthermore, major market players are undertaking various strategies to increase the competition and offer enhanced services to their customers. For instance, in August 2020, Brandwatch, a digital consumer intelligence company, announced a partnership with Kinetiq, the pioneer of real-time TV intelligence for brand, to provide the most comprehensive cross-channel marketing intelligence solution on the market. The deal brings Kinetiq’s data from over 2,600 TV stations across more than 85 countries into the Brandwatch consumer research platform alongside the world’s largest social data archive and its suite of AI-powered analytics, customer experience management, alerting and reporting tools. These is a major driving factor for the social media analytics-based insurance market growth.

On the basis of platform, the Facebook segment acquires major social media analytics-based insurance market share. This is attributed to the fact that Facebook is a great channel that contains information about the current, and potential customers and insurers can harvest this critical information to make significant product developments. Furthermore, insurers can mine crucial customer data and utilize predictive analytics to gain valuable insights from Facebook, which ultimately help their customers to reach better underwriting decisions.

By region, North America attained the highest growth in 2021. This is attributed to the rapid advancements in the insurance industry, owing to modern technologies such as machine learning, blockchain, big data, and artificial intelligence has contributed toward growth of the social media analytics-based insurance market in this region. In addition, increase in awareness of insurance analytical tools among insurance companies, government agencies, and third-party administrators, brokers, and consultancies surge in partnership for adopting & implementing insurance analytical tools are the major factors that influence the growth of the social media analytics-based insurance market trends in this region. 

COVID-19 had a positive impact on the market since, the increasing number of cloud adoption and Artificial Intelligence (AI) among the insurance providers. In addition, most individuals stayed at home at that period, which caused social media sites to become crowded. Therefore, due to the widespread use of social media platforms for communication, many banking organizations, financial institutions, and insurance businesses have started using these channels to interact with their clients and the general public Therefore, the COVID-19 positively impacted the social media analytics-based insurance market.

Key findings of the study

• By component, the tools segment led the social media analytics-based insurance market in terms of revenue in 2021.
• By deployment mode, the on-premise segment accounted for the highest social media analytics-based insurance market share in 2021.
• By end user, the insurance companies segment accounted for the highest social media analytics-based insurance market trends in 2021.
• By region, North America generated the highest revenue in 2021.

The report profiles of key players operating in the social media analytics-based insurance market analysis such as Adobe, Brandwatch, Cision U.S. Inc., Clarabridge, Digimind, GoodData Corporation, Hootsuite Inc. International Business Machines Corporation, Meltwater, Netbase Quid, Inc., Oracle, Salesforce, Inc., SAS Institute Inc.,  Sprout Social Inc., Talkwalker Inc., Kazee Indonesia and ViralStat.com. These players have adopted various strategies to increase their market penetration and strengthen their position in the social media analytics-based insurance industry.