Insurance Analytics Market Size
| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 13.29 Billion |
| Market Size (2030) | USD 27.80 Billion |
| CAGR (2025 - 2030) | 15.90% |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Insurance Analytics Market Analysis
The Insurance Analytics Market size is estimated at USD 13.29 billion in 2025, and is expected to reach USD 27.80 billion by 2030, at a CAGR of 15.90% during the forecast period (2025-2030).
Driven by the rising adoption of advanced analytics and data-centric decision-making, the insurance analytics market is witnessing robust growth. Predictive analytics enable companies to pinpoint dubious claims, detect fraudulent activities, and discern behavioral patterns for further research. This not only streamlines the claims, policy, and sales processes but also bolsters sound business decisions. Such factor increases the demand for insurance analytics, which in turn drives the insurance analytics market size growth.
With the integration of AI and machine learning, the value of these solutions is on the rise. A report from Accenture suggests that AI could elevate profitability rates in the financial sector by 31% by 2035. Furthermore, AI's capabilities may pave the way for personalized financial services, enhancing the overall customer experience. Thus, AI-driven insurance analytics stand to offer financial institutions potential savings in costs and billions in revenue boosts, all while curbing fraud. In EMEA, Advanced Analytics (AA) has already bolstered the operating profit of top performers by 10 to 25 percent, with expectations of further growth in the next two years.
Claims management is poised to lead the charge in the insurance analytics arena. The fusion of AI, automation, and data analytics is revolutionizing claims management, boosting efficiency, minimizing manual tasks, and refining accuracy. With claim analytics slashing processing times by up to 40% and predictive analytics curbing claim costs by 20%, the benefits are evident. Overall, data analytics is enhancing operational efficiency by a notable 25%.
North America is set to uphold its dominant stance, thanks to significant technological strides. The U.S. boasts over 5,900 insurance companies, and data from webfx reveals that approximately 85% of U.S. homeowners hold insurance, averaging an annual cost of USD 1,759 for USD 250,000 in dwelling coverage. Meanwhile, insurtech firms are reshaping the insurance domain, leveraging AI for claims processing and blockchain for smart contracts.
IBM Corporation and LexisNexis Risk Solutions are key players in the insurance analytics landscape. IBM is at the forefront, aiding insurance firms in weaving generative AI into their operations. This enhancement spans tasks like underwriting and claims processing, where insights are drawn from extensive documents and images. Moreover, tools like IBM Cognos Analytics empower insurers, offering actionable insights that refine risk management, pricing, and customer experience.
\As competition intensifies in the insurance realm, there's a parallel surge in the demand for analytics solutions. These tools are vital for companies striving to navigate heightened risks, address catastrophes, and adhere to regulatory demands. Such dynamics are pivotal in driving the widespread adoption of insurance analytics.
Data reliability and security are significant due to increased connection and distant accessibility. Concerns about nefarious parties getting access to personal data are very high. Historically, insurance companies have yet to be known to make significant expenditures in infrastructure, so purchasing and maintaining pricey security software will hinder the growth of the Insurance Analytics Market.
Insurance Analytics Market Trends
Risk Management Holds Significant Market Share in Insurance Analytics Market
Risks from man-made and natural disasters are regularly identified and managed in the insurance sector. The need for integrated risk management, which combines knowledge, control, and optimization of routine company operations, is high due to this uncertain risk. Insurance analytics solutions provide the crucial understanding to enhance risk management at all levels, which leads to increasing market size in insurance analytics market.
In India, as per Policybazaar, around 85% population preferred purchasing through offline channel for life insurance products. However it is expected that in coming time online purchase channel usage will increase. Also, around 86% of insurance companies are creating insurance data analytics systems to provide the most accurate predictions of big data reports.
Data analytics enable unprecedented creativity across all product categories and corporate functions. For instance, instead of depending on internal data sources like loss records, auto insurance started working on behavior-based analytics and incorporating credit ratings from credit bureaus into their study.
Due to false claims, insurance firms suffer enormous losses every year. Insurers believe that between 10% to 20% of claims are fraudulent and that less than 20% of fraudulent claims are discovered. It is possible to detect fraudulent activities, suspicious claims, and behavioral patterns using predictive analytics incorporating statistical models for efficient fraud detection.
AI for claims fraud detection is quite beneficial since it can immediately notice patterns, allowing them to identify anomalies and suspicious requests in real-time. Businesses are using AI to speed up the entire insurance claims process and gain access to more advanced fraud detection without adding more staff or spending more money.
The speed at which claims are settled is crucial to determining how effectively an insurance company runs. Many claim-related tasks are processed quickly, and the entire claim-settlement process is streamlined post-adoption of data analytics' excellent abilities to process and analyze huge datasets.
Asia-Pacific to Witness Highest Growth
APAC region's insurance analytics markets are primarily driven by the increased adoption of digital infrastructure due to the growing need for customer and behavioral analytics, machine learning, and algorithm development. For instance, in India, Max Life Insurance launched a real-time analytics solution to identify false medical reports and provide relative health scores for a customer.
Furthermore, populations in the Asia-Pacific region are becoming more urbanized, which brings all the health hazards related to a more sedentary lifestyle. By 2050, the urban population in Asia is expected to grow by 50% - an additional 1.2 billion people, as per UN Habitat. This scenario will urge customers to invest in health insurance plans. Thus there is a vast opportunity for insurers to capture this newly added urban crowd.
Insurance companies in the region are investing in automating processes with straight-through processing at the back end and digitally enabling distribution channels on the front end. For instance, Prudential collaborated with Google Cloud for its data analytics solution. Through this partnership, protection, health, and savings solutions will be more straightforward and accessible across Asia.
In recent years, most Asia-Pacific markets relaxed their limitations on foreign ownership. Six of seven emerging Asia Pacific markets have permitted foreign investors to control and own a majority interest in domestic insurers, which in turn drives the insurance analytics market size growth.
Further, the laws and regulations for insurers in Asia-Pacific are constantly evolving. These regulatory improvements have focused on policyholder protection, capital preservation, and InsurTech promotion despite the varying degrees of development across various regional nations.
Insurance Analytics Industry Overview
The insurance analytics market needs to be more cohesive. Players tend to invest in innovating their product offerings to cater to the insurance industry's changing demands. Key players in the markets are IBM Corporation, LexisNexis Risk Solutions, Hexaware Technologies Limited, and others. Overall, the market is semi-consolidated in nature.
Insurance Companies can use data analytics to learn more about client behavior and deliver customized solutions per user needs. These Analytics providers sign contracts with various companies to help them with Information Technology Software and services. As businesses shift to digital technologies, they have a wider scope of expansion.
Insurance Analytics Market Leaders
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IBM Corporation
-
LexisNexis Risk Solutions
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Hexaware Technologies Limited
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Guidewire Software Inc.
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Applied Systems Inc.
- *Disclaimer: Major Players sorted in no particular order
Insurance Analytics Market News
- February 2025: Moody’s Corp. has agreed to acquire CAPE Analytics, which provides geospatial AI intelligence for residential and commercial properties. Moody’s said the deal will create a property database capable of delivering instant, address-specific risk insights as it brings together Moody’s Intelligent Risk Platform and catastrophe risk modeling for the insurance sector with CAPE’s geospatial AI analytics.
- May 2024: Data analytics service provider insurtech Optalitix announced a partnership with the UK’s largest, government-backed anti-terror reinsurance company Pool Re, for the implementation of a new, end-to-end treaty and claims management system with full auditability and enhanced reporting.
Insurance Analytics Industry Segmentation
Insurance Analytics is used to streamline the procedures for calculating and evaluating insurance risks and making judgments about insurance products. Insurance brokers and organizations may quickly analyze expenses using insurance analytics tools and solutions, ensure stable financial operations and liquidity, and keep tabs on operational costs like those associated with sales, marketing, operations, or customer service.
The insurance analytics market is segmented by component (tools and services), business applications (claims management, risk management, process optimization, customer management, and personalization), deployment mode (on-premises and cloud), end-user (insurance companies, government agencies, and third-party administrators, brokers, and consultancies), and geography (North America, Europe, Asia-Pacific, and Rest of the World). The market size and forecasts are provided in terms of value (USD) for all the above segments.
| By Component | Tool |
| Services | |
| By Business Application (Qualitative Analysis) | Claims Management |
| Risk Management | |
| Process Optimization | |
| Customer Management and Personalization | |
| By Deployment Mode | On-premise |
| Cloud | |
| By End-User | Insurance Companies |
| Government Agencies | |
| Third-party Administrators, Brokers, and Consultancies | |
| By Geography*** | North America |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
| Tool |
| Services |
| Claims Management |
| Risk Management |
| Process Optimization |
| Customer Management and Personalization |
| On-premise |
| Cloud |
| Insurance Companies |
| Government Agencies |
| Third-party Administrators, Brokers, and Consultancies |
| North America |
| Europe |
| Asia |
| Australia and New Zealand |
| Latin America |
| Middle East and Africa |
Insurance Analytics Market Research Faqs
How big is the Insurance Analytics Market?
The Insurance Analytics Market size is expected to reach USD 13.29 billion in 2025 and grow at a CAGR of 15.90% to reach USD 27.80 billion by 2030.
What is the current Insurance Analytics Market size?
In 2025, the Insurance Analytics Market size is expected to reach USD 13.29 billion.
Who are the key players in Insurance Analytics Market?
IBM Corporation, LexisNexis Risk Solutions, Hexaware Technologies Limited, Guidewire Software Inc. and Applied Systems Inc. are the major companies operating in the Insurance Analytics Market.
Which is the fastest growing region in Insurance Analytics Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Insurance Analytics Market?
In 2025, the North America accounts for the largest market share in Insurance Analytics Market.
What years does this Insurance Analytics Market cover, and what was the market size in 2024?
In 2024, the Insurance Analytics Market size was estimated at USD 11.18 billion. The report covers the Insurance Analytics Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Insurance Analytics Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Insurance Analytics Industry Report
Statistics for the 2025 Insurance Analytics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Insurance Analytics analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
