Insurance Analytics Market Size, Industry Analysis Report, Regional Outlook (U.S., Canada, UK, Germany, France, Italy, Spain, Netherlands, China, India, Japan, Australia & New Zealand (ANZ), South Korea, Southeast Asia, Brazil, Mexico, Argentina, Colombia, South Africa, UAE, Saudi Arabia, Israel) Industrial Analysis Report, Growth Potential, 2021 – 2027
Report ID: GMI4674
Insurance Analytics Market size is estimated to see a significant surge between 2020 and 2026. Insurance analytics is the use of data analytics in an insurance company. It transforms the way businesses operate due to generation of leads, improving customer satisfaction, reduction in fraudulent cases, prediction of risk factor, and enabling business growth. With the help of analytics, insurance companies are able to generate leads on the basis of the availability of unstructured data available on the web.
Fraudulent case with respect to claim processing is one of the major factors affecting the insurance sector. This is handled by predictive analysis in the insurance sector. For instance, previously occurred fraudulent cases are stored in the data repository of the company. When the company processes any claim, the organizations check if the trend is repeated, helping in the reduction of fraudulent cases.
On the basis of components, the insurance analytics market is segmented into solution & service. Service component is further segmented into consulting, system integration, and maintenance. Insurance analytics is helping consulting agencies in a comprehensive manner by providing crucial business insights. For instance, with the help of analytics, insurance agents can identify if there is a gap in coverage of one of the clients. Using that information, agents call the clients for cross-selling and upselling, leading to more sales.
On the basis of deployment model, the insurance analytics market is segmented into on-premise and cloud. On-premise model requires significant amount of investment on IT infrastructure, posing excessive strain on the financial resources of the organization. Cloud model is a subscription-based service, which enables organizations to utilize the power of data analytics while being cost-effective.
On the basis of organization size, insurance analytics is segmented into large enterprises and Small & Medium Enterprises (SMEs). SMEs are able to utilize & incorporate insurance analytics in their businesses due to the reduction in overall cost. Large enterprises are using insurance analytics in order to extract insights from the huge chunk of data being generated.
On the basis of application, the insurance analytics market is segmented into claim management, risk management, process optimization, customer management, and personalization. Insurance analytics helps insurance companies in determining the risk factor associated with the insurance cover, which decides the final insurance premium. For instance, an insurance company would look into the historical data of a client and if a client has history of over-speeding, he/she will be subjected to more premium to avail the insurance cover.
On the basis of end use, insurance analytics is segmented into insurance companies, government agencies, and third-party administrators. Insurance companies are extensively dependent on internal data analytics and also analyze the data from third-party data sources. Data is obtained from social media platforms or smart phones etc., which has become a major source for behavioral insights for insurance companies.
North America dominated the overall insurance analytics market in 2019 and is expected to continue its dominance over the forecast period. This is attributed to the presence of major players in the field of analytics and the emergence of prescriptive/predictive analytics in the region. Asia Pacific is also expected to see a major growth over the forecast period owing to technological advancements in the region in countries including China, India & Japan. For instance, the India telecommunication sector has seen a huge uplift due to the introduction of 4G/5G technologies at a reasonable price, which has increased the digital imprint.
The leading enterprises in the insurance analytics market are providing solutions to the insurance companies to make better and informed decisions. For instance, Lemonade, an insurance company located in NYC collects data via a bot. The bot solves queries of customers and also stores data about customer preference, which on a later stage helps the insurance companies in client approach. Major companies in the market are Hexaware Technologies, Microsoft Corporation, LexisNexis Risk Solutions, OpenText, MicroStrategy Inc., Oracle Corporation, Tableau Software, PEGASYSTEMS Inc., Sapiens International, Verisk Analytics Inc., Lemonade Inc., Metromile Inc., and Liberty Mutual.
Market by Component, 2015-2026 (USD Million)
- System integration
Market by Deployment, 2015-2026 (USD Million)
- On premise
- On cloud
Market by Organization Size, 2015-2026 (USD Million)
- Large enterprises
Market by End User, 2015-2026 (USD Million)
- Insurance companies
- Government agencies
- Third-party administrators
Market by Application, 2015-2026 (USD Million)
- Claim management
- Risk management
- Process optimization
- Customer management
The above information has been provided for the following regions and countries:
- North America
- Australia & New Zealand (ANZ)
- South Korea
- Southeast Asia
- Latin America
- South Africa
- Saudi Arabia
- Hexaware Technologies
- Lemonade Inc.
- LexisNexis Risk Solutions
- Liberty Mutual.
- Metromile Inc.
- Microsoft Corporation
- MicroStrategy Inc.
- Oracle Corporation
- PEGASYSTEMS INC.
- Sapiens International
- Tableau Software, LLC
- Verisk Analytics, Inc
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