PUBLISHER: The Business Research Company | PRODUCT CODE: 1760043
PUBLISHER: The Business Research Company | PRODUCT CODE: 1760043
Artificial intelligence (AI) in insurance claims processing involves the use of machine learning, natural language processing, and other AI technologies to automate and optimize the evaluation, validation, and settlement of insurance claims. AI systems can analyze vast amounts of data, detect fraud, assess damages, and accelerate decision-making, thereby improving accuracy, reducing processing times, and enhancing customer experiences during the claims process.
The primary offerings of AI in insurance claims processing are software and services. AI software includes machine learning algorithms, natural language processing, and predictive analytics tools that automate claim assessments, fraud detection, and interactions with policyholders. It is deployed through both on-premise and cloud-based models, utilizing technologies such as machine learning, natural language processing, and computer vision. These solutions cater to enterprises of all sizes, including large corporations and small to medium-sized enterprises (SMEs), and are used by end users such as life and health insurance providers, as well as property and casualty insurance companies.
The artificial intelligence (AI) in insurance claims processing market research report is one of a series of new reports from The Business Research Company that provides artificial intelligence (AI) in insurance claims processing market statistics, including the artificial intelligence (AI) in insurance claims processing industry's global market size, regional shares, competitors with an artificial intelligence (AI) in insurance claims processing market share, detailed artificial intelligence (AI) in insurance claims processing market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence (AI) in insurance claims processing industry. This artificial intelligence (AI) in insurance claims processing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The artificial intelligence (AI) in insurance claims processing market size has grown rapidly in recent years. It will grow from$0.39 billion in 2024 to $0.46 billion in 2025 at a compound annual growth rate (CAGR) of 16.8%. The growth during the historic period can be attributed to the rising need for fraud detection, increasing insurance claim volumes, advancements in machine learning algorithms, regulatory pressures driving digital transformation, and the growing adoption of automation in the insurance industry.
The artificial intelligence (AI) in insurance claims processing market size is expected to see rapid growth in the next few years. It will grow to$0.85 billion in 2029 at a compound annual growth rate (CAGR) of 16.6%. The growth during the forecast period can be attributed to the increasing integration of artificial intelligence (AI) with blockchain, rising demand for real-time claims processing, growing use of AI-powered chatbots, expansion of predictive analytics for risk assessment, and the increasing adoption of cloud-based AI solutions. Key trends in the forecast period include AI-driven claims automation, enhanced fraud detection using deep learning, the use of natural language processing (NLP) for claims documentation, the expansion of AI-powered self-service portals, and the growing role of AI in personalized policy recommendations.
The growing demand for personalized claims assistance is expected to drive the expansion of artificial intelligence (AI) in the insurance claims processing market. Personalized claims assistance involves AI-powered solutions that deliver tailored support, real-time claim updates, and automated recommendations based on individual policyholder needs. As policyholders increasingly expect faster and more customized services, insurers are prioritizing enhanced customer experience through personalized communication and responsive support. AI enables this by streamlining processing, improving accuracy, providing proactive updates, and offering data-driven customer service. For example, in October 2024, Higson, a Poland-based insurtech company, reported that personalization in insurance can result in a 10-15% revenue increase and up to 20% improvement in customer retention. Additionally, 95% of customers are open to sharing data, and 88% actively seek personalized services. As a result, the growing interest in personalized claims assistance is propelling the adoption of AI in the insurance claims processing market.
Key players in the AI insurance claims processing market are increasingly focusing on advanced automation technologies, such as agentic artificial intelligence, to enhance efficiency and accuracy in claims assessment. Agentic AI refers to autonomous AI systems capable of independent decision-making and task execution with minimal human intervention. For instance, in February 2025, Simplifai, a Norway-based AI solutions provider, launched a groundbreaking agentic AI automation platform designed to streamline insurance functions such as claims processing, underwriting, and customer service. This solution enables insurers to improve operational efficiency, reduce settlement times, enhance accuracy, and minimize administrative burdens-ultimately delivering smoother, more efficient customer experiences.
In February 2025, Xceedance, a US-based provider of insurance consulting and managed services, acquired CIS Claim Services for an undisclosed amount. The acquisition aims to enhance Xceedance's claims capabilities by incorporating alternative dispute resolution (ADR) services and expanding its network of independent adjusters. Leveraging AI-driven solutions, Xceedance plans to accelerate the claims process and improve operational performance for insurers and managing general agents (MGAs). CIS Claim Services, also based in the US, specializes in property claims appraisal, field adjusting, and managing litigated claims, offering valuable expertise to bolster Xceedance's AI-powered claims infrastructure.
Major players in the artificial intelligence (AI) in insurance claims processing market are ICICI Lombard General Insurance Company Ltd, CCC Intelligent Solutions Inc., Quantiphi, Sapiens International, Blue Prism Limited, ScienceSoft USA Corporation, Harbinger Group, Newgen Software Technologies Limited, Vlink Inc., LeewayHertz, Astera Software, Damco Group, Ravin AI Ltd., ZestyAI, Tractable Ltd., Sprout.ai, CLARA Analytics Inc., V7 Ltd., Alula Technologies Ltd., Simplifai Systems Limited, and Perceptiviti Data Solutions Private Limited.
North America was the largest region in the artificial intelligence (AI) in insurance claims processing market in 2024. The regions covered in artificial intelligence (AI) in insurance claims processing report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the artificial intelligence (AI) in insurance claims processing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The artificial intelligence (AI) in insurance claims processing market consists of revenues earned by entities by providing services such as automated claims assessment, predictive analytics, fraud detection algorithms, natural language processing (NLP)-based chatbots, and machine learning-driven decision support systems. The market value includes the value of related goods sold by the service provider or included within the service offering. The AI in insurance claims processing market also includes sales of AI-integrated data servers, cloud computing infrastructure, and cybersecurity solutions. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Artificial Intelligence (AI) In Insurance Claims Processing Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on artificial intelligence (ai) in insurance claims processing market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for artificial intelligence (ai) in insurance claims processing ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The artificial intelligence (ai) in insurance claims processing market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.