Rising need of big data and predictive modeling capability during the COVID-19 pandemic drives the adoption of insurance analytics solutions and rise in adoption of IoT products to magnify growth in the global Data Analytics in Insurance Market
With a projected value of US$ 19.6 Bn, up from US$ 10.6 Bn in 2022, data analytics in the insurance market is expected to experience exponential industry growth over the given forecast period of 2023–2032, growing at a CAGR of 7.1%.
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Covid-19 Impact & Market Status
The report offers an exhaustive overview of the business dynamics and new investment strategies that are being adopted by business leaders across countries and regions to overcome the acute challenges and financial instabilities that have emerged in the post pandemic times.
The report highlights some of the best industry strategies and practices that are adopted by the players across local and global markets. Ever since the Covid-19 broke out in 2019, it has spread aggressively, resulting in rapid declaration by the WHO affirming Covid-19 as a global pandemic and an emergency.
The impact of the pandemic is widespread and the aftermath is well pronounced, gravely affecting the global data analytics in insurance market. The sudden pandemic and its implications have posed significant challenges such as travel bans, quarantines, and lockdowns.
These developments are hampering operations resulting in supply chain breaches, stock market inefficiencies, and vendor chaos. These are constantly interfering with the normal functioning of industries.
Ever since the outbreak of the global crisis, impact on upstream, downstream, and midstream industries have been appalling. The report delivers a quick ready-to-deploy approach to counter such crisis and steer the global cloud professional serices market towards steady growth and systematic progression.
Amidst the pandemic, aligning with new dynamics, global data analytics in insurance market has been witnessing new dynamics which are further necessitating new business models and approaches to recoup growth and revenue streams.
In this report, inquisitive business players would be provided with sufficient guidelines regarding business transformation, integral to sustain stiffening competition in the pandemic and beyond pandemic era global Data Analytics in Insurance market.
Tools segment to Sustain the Highest Revenues During Forecast Period
Insurance analytics tools are widely adopted by various end users, such as insurance companies, third-party administrators, agents, and brokers, to gain a competitive advantage over others by using data as a strategic asset. The growing emphasis on compliance as well as government regulations across the insurance sector has also fueled the adoption of insurance analytics solutions, especially in highly regulated regions such as North America and Europe. The emerging regulations, such as GDPR, are expected to further propel the demand for insurance analytics solutions during the forecast period. In addition to the strict governance and compliance policies, insurance analytics solutions also help enterprises avert risks through fraud and risk management applications and optimize their daily operations, leading to a reduced operational cost.
Risk Management Sector to Generate More Revenue
Insurers are widely using analytics solutions to understand the potential risks and deploy countermeasures to mitigate losses, or at least screen, pre-empt, and assess the cost of risks in the underwriting process. Risk management involves the identification, assessment, and management of potential risks, incorporating analytics to support decision-making by clearly stating business goals and objectives, and facilitating precise information management with a better understanding of the trade-offs between risks and rewards. Risk management provides insurers with the risk capacity to maintain specific credit ratings, manage capital, and reduce earnings volatility across insurance companies.
Cloud deployment model to grow at a higher CAGR during the forecast period
The cloud deployment model is expected to grow at a higher CAGR during the forecast period. Cloud-based solutions are gaining a firm hold in the market due to various benefits, such as cost control, resource pooling, and less implementation time. Cloud deployment offers flexibility, scalability, and cost-effectiveness benefits. It also enables an enterprise to have more control over the server, infrastructure, and systems that can be configured as per the business requirements.
Large enterprises (SMEs) to Witness the Higher Demand throughout Forecast Period
Based on organization size, the large enterprises segment is estimated to account for the largest share of the overall insurance analytics market in 2020. The large share of this segment is mainly attributed to the high spending capacity of insurance companies on data driven technologies to optimize their productivity. However, the SMEs segment is projected to grow at the highest CAGR during the forecast period.
Insurance Companies to Command the Largest Share of the Overall Insurance Analytics Market
Based on end-user, the insurance companies segment is estimated to account for the largest share of the overall insurance analytics market in 2020. The large share of this segment is attributed to the power of privatization in making business effective decisions, which encourage the high use of modern technologies in order to attract and serve high population of customers. However, the government agencies segment is expected to grow with the highest CAGR during the forecast period.
APAC to Sweep the Largest Revenue Streams
APAC is expected to grow at the highest CAGR during the forecast period. APAC constitutes major countries, such as China, Japan, South Korea, Australia, and the rest of APAC, which are increasingly contributing toward the development of data analytics solutions in the insurance analytics market. Various end users such as insurance companies and government agencies are leading the race in terms of cloud adoption in the APAC region.
COVID-19 accelerated organizations to new customer engagement through digital experiences and need for cloud-based digital solutions by insurer to obtain higher scalability to offer new opportunities in the global data analytics in insurance market
Growing digitalization in insurance industry and rising adoption of advanced analytics and data driven decision making techniques are some of the major factors attributing to the growth of the insurance analytics market. Additionally, the increasing adoption of IoT insurance and growing acceptance of insurance analytics among small and medium sized enterprises are poised to offer abundant opportunities for the insurance analytics market players during the forecast period. However, the lack of skilled professionals to manage analytics solutions and reluctance in adoption of insurance analytics solutions due to data privacy and security concern are some of the key factors causing some hindrances to the consistent market growth.
Data analytics allows businesses to understand the customer’s behavioral pattern and provides detailed insights about the customers, and determines whether it’s a risk worth taking or not. Moreover, the technology also helps the insurance companies develop a custom policy plan for specific customers to improve their sales
Insurance analytics is widely used for controlling risk in underwriting, pricing, rating, claims, marketing, and reserving in the insurance sector. In addition, this analytic solution helps insurance companies to manage risks & offer better insurance contracts in fields such as health, life, and property or casualty. Furthermore, the key role of this insurance analytics is to reduce costs, optimize customer relationship processes and use predictive analytics in insurance models to create reliable reports across several product lines.
Despite a minor growth dip owing to Covid-19 implications, the global Data Analytics in Insurance market is expected to recoup growth and register a healthy CAGR over the forecast period.
Furthermore, the significant requirement & implementation of advance technologies and provision of integrated & value-added services to customers promote adoption of these technologies. In addition, as consumers are inclined toward getting online quotes & customized insurance solutions 24/7 from different companies, which creates competition among firms operating in the industry. This, as a result promotes growth of the insurance analytics market. However, security & data privacy concern and stringent government regulations are some of the factors that hamper market growth.
Forward-looking players in the global data analytics in insurance market are furthering investments towards developing advanced data analytics in insurance. It plays a vital role by providing monitoring solutions and increasing performance with the help of real-time data about the storage and distribution network in various applications.
The easy availability of analytics solutions with user-friendly interfaces coupled with the power of business intelligence has also triggered the adoption rate of insurance analytics solutions. Several companies in this sector rely heavily on insurance analytics to create new business opportunities, predict future trends, generate more revenue, produce actionable insights, and optimize efforts in operations. Thus, the rising focus of insurers on advanced analytics and technologies that enable data-driven decision-making to improve business operations and gain a competitive edge in the industry is expected to drive the growth of the insurance analytics market significantly.
However, stringent government regulations and security & data privacy concerns are some of the factors that limit the market growth. Furthermore, developing economies offer significant opportunities for insurance analytics solution providers to expand & develop their offerings, especially among emerging economies such as Australia, China, India, Singapore, and South Korea. In addition, increase in fraudulent activities are expected to boost demand for insurance analytics solutions in the upcoming years.
The major players of the global Data Analytics in Insurance market are IBM, Salesforce, Oracle, Microsoft, Sapiens, OpenText, SAP, Verisk Analytics, SAS Institute, Vertafore, and TIBCO.
The data analytics in insurance market is a rapidly progressing industry and is characterized to have industrial frontliners as well as aspiring new players aiming to penetrate into the aggressive competitive landscape across global and local markets. Additionally, various new and aspiring players are improving their product lines and upgrading technological capabilities to improve revenue streams amidst Covid-19 impact.
Latest Innovations in the Global Data Analytics in Insurance Market: a Snapshot
- In September 2020, IBM launched a new risk-based service IBM Risk Analytics. IBM Risk Analytics is designed to help organizations apply the same analytics used for traditional business decisions to cybersecurity spending priorities.
- In August 2020, WNS launched EXPIRIUS, AI, and analytics-driven customer experience solution.
- In June 2020, Microsoft announced a new global skills initiative required for the COVID-19 scenario. The objective of the initiative is to provide extensive access to digital skills in improving economic recovery, particularly for the people hardest hit by job losses.
Data Analytics in Insurance Market Scope
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2032 |
| Study Period | 2018-2032 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2032 | USD 19.6 billion |
| Growth Rate | CAGR of 7.1 % during 2022-2032 |
| Segment Covered | Type, Application, Regions |
| Regions Covered | North America, Europe, Asia Pacific, South America, Middle East and Africa |
| Key Players Profiled | IBM, Salesforce, Oracle, Microsoft, Sapiens, OpenText, SAP, Verisk Analytics, SAS Institute, Vertafore, and TIBCO. |
Key Segments of the Global Data Analytics in Insurance Market
Component Overview, (USD Billion)
- Tools
- Services
Application Overview, (USD Billion)
- Claims Management
- Risk Management
- Customer Management and Personalization
- Process Optimization
- Others (workforce management and fraud detection)
Organization Size Overview, (USD Billion)
- Large Enterprises
- SMEs
Deployment Mode Overview, 2018-2028 (USD Billion)
- Cloud
- On-premises
End-User Overview, (USD Billion)
- Insurance Companies
- Government Agencies
- Third-party Administrators, Brokers and Consultancies
Regional Overview, (USD Billion)
North America
- U.S
- Canada
Europe
- Germany
- Italy
- UK
- Rest of Europe
Asia Pacific
- China
- Australia
- Japan
- South Korea
- Rest of APAC
Middle East and Africa
- Kingdom of Saudi Arab
- South Africa
- UAE
- Rest of MEA
South America
- Brazil
- Mexico
- Rest of South America
Frequently Asked Questions (FAQ) :
The market study guides Data Analytics in Insurance companies with strategic planning to ensure they realize and drive business value from their plans for growth strategy.
The Data Analytics in Insurance market is projected to register a moderate CAGR during forecast period of 2022 to 2032
Companies of Data Analytics in Insurance Industry are studied thoroughly and profiled so as to understand why specific trends will have a high impact and how they are factored into the Data Analytics in Insurance market trajectory and future outlook.