Global Insurance Analytics Market Size, Share, Growth Analysis, By Component(Solution and Service), By Deployment(On premise and Cloud) - Industry Forecast 2023-2030

Global Insurance Analytics Market size was valued at USD 10.65 Billion in 2022 and is poised to grow from USD 11.92 Billion in 2023 to USD 29.30 Billion by 2031, at a CAGR of 11.9% during the forecast period (2024-2031).

The adoption of these technologies is driven by their necessity, deployment, and the provision of integrated and value-added services to clients. Moreover, customers increasingly seek online quotes and personalized insurance solutions from multiple providers at all hours, intensifying competition within the industry. Consequently, the insurance analytics market is poised for expansion. Recent research on 68 EMEA insurance companies indicates that 85 to 90% of them struggle to find a compelling economic rationale for data analytics solutions. Insurers face several hurdles hindering their ability to fully leverage the potential of data analytics solutions. Pressured to stay ahead of competitors, insurers recognize the need for robust data analytics capabilities. Furthermore, in the US, life insurers have streamlined their underwriting procedures in recent years to simplify and make purchasing life insurance online more affordable. These factors contribute to the growing acceptance of market growth trends.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Insurance Analytics Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analysed to get the final quantitative and qualitative data.

Global Insurance Analytics Market Segmental Analysis

Global Insurance Analytics Market is segmented on the basis of component, deployment, enterprise size, end use and region. By component, the market is segmented into solution and service. By deployment, the market is segmented into on-premise and cloud. By enterprise size, the market is segmented into large and small & medium enterprise. By end use, the market is segmented into insurance companies, government agencies, third party administrators, brokers & consultancies. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Drivers of the Global Insurance Analytics Market

Insurers are progressively acknowledging the significance of data analytics in informed decision-making. Through the utilization of advanced analytics methodologies, insurers can acquire valuable insights into customer behaviour, risk evaluation, fraud identification, and price optimization. This growing need for data-informed decision-making is spurring the uptake of insurance analytics solutions.

The insurance sector collects extensive data from diverse origins including customer interactions, policy information, claims records, and external data outlets. The emergence of technologies like the Internet of Things (IoT) and telematics further expands insurers' access to data from devices and sensors. Through insurance analytics, insurers can efficiently utilize this data and extract actionable insights.

Restraints in the Global Insurance Analytics Market

Insurance firms frequently encounter difficulties in handling and consolidating data from multiple origins, such as outdated systems, external vendors, and external data outlets. Inaccurate or insufficient data can compromise the efficacy of insurance analytics solutions, resulting in erroneous insights and decision-making. Challenges related to data quality and integration complexities represent significant impediments to the uptake and effectiveness of insurance analytics.

Market Trends of the Global Insurance Analytics Market

Insurance firms are progressively embracing sophisticated analytics methodologies like machine learning, artificial intelligence, natural language processing, and predictive modelling. These methodologies empower insurers to derive insights from vast datasets, automate operations, and base decisions on data-driven analyses. The integration of advanced analytics is revolutionizing conventional insurance practices and elevating the quality of customer interactions.