Insurance Analytics Market by Component, Business Application (Claims Management, Risk Management, Customer Management and Personalization, Process Optimization), Deployment Model, Organization Size, End-User, and Region - Global Forecast to 2023
“The rapid adoption of data-driven decision-making process and advanced analytics techniques is driving the insurance analytics market”
MarketsandMarkets expects the global insurance analytics market to grow from USD 6.63 billion in 2018 to USD 11.96 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 12.5% during the forecast period. Rapid adoption of data-driven decision-making process and advanced analytics techniques is driving the market. However, the lack of integration with legacy systems and varying structure of regulation policies are anticipated to limit the growth of the insurance analytics market.
“The risk management business application is expected to hold the largest market size by 2023”
Insurers require to effectively use their data to understand the potential risks, use counter measures to mitigate losses, or at the least, screen, pre-empt, and price for them in the underwriting process. Risk management involves identification, assessment, and management incorporating use of analytics to support decision-making process through clearly stating business goals and objectives, precise information management with better understanding of the trade-offs between risk and reward.
“Insurance companies are estimated to be the largest adopter of insurance analytics solution in 2018”
Insurance companies are now widely adopting various technology solutions including analytics for their internal and customer-facing services. For example, multi-line carriers that supply both consumer policies — for homes, cars and small groups — in addition to business services, such as P&C insurance, run many applications to handle underwriting, claims, and CRM. Increasing service demand and critical end-of-year fiscal reporting force these organizations to adopt advanced technological solutions. This, in turn, drive the insurance companies’ market size in the insurance analytics market during the forecast period.
“Asia Pacific (APAC) is projected to grow at the highest CAGR and North America to hold the largest market size”
The APAC region is expected to grow at the fastest rate in the global insurance analytics market during the forecast period, due to its growing technology adoption rate. Rapid economic developments, globalization, digitalization, and the increased adoption of cloud-based technologies are expected to drive the insurance analytics market in the APAC region. North America, followed by Europe, is expected to continue being the largest revenue-generating region for the insurance analytics vendors, over the next 5 years. This is mainly due to the presence of developed economies, such as Canada and US, and the high focus on innovations in R&D and technology across industry verticals.
In-depth interviews were conducted with the Chief Executive Officers (CEOs), marketing directors, other innovation and technology directors, and executives from various key organizations operating in the insurance analytics marketplace.
By Company - Tier 1 - 22%, Tier 2 - 30%, and Tier 3 - 48%
By Designation - C-Level - 30%, Director Level - 45%, and Others - 25%
By Region - North America - 41%, Europe - 25%, APAC - 20%, and RoW - 14%
The insurance analytics ecosystem comprises the following major vendors:
1. IBM (US)
2. Microsoft (US)
3. Oracle (US)
4. SAP SE (Germany)
5. Salesforce (US)
6. SAS Institute (US)
7. OpenText (Canada)
8. Verisk Analytics (US)
9. Tableau Software (US)
10. Pegasystems (US)
11. Hexaware (India)
12. Guidewire (US)
13. MicroStrategy (US)
14. Sapiens International (Israel)
15. LexisNexis (US)
16. Palantir (US)
17. TIBCO Software (US)
18. Applied Systems (US)
19. Birst (US)
20. BOARD International (Switzerland)
21. Mitchell International (US)
22. QlikTech (US)
23. Vertafore (US)
24. PrADS Inc. (US)
25. BRIDGEi2i (India)
The insurance analytics market revenue is primarily classified into revenues from tools and services. Revenue from tools is associated with software and platform offerings, while revenue from services is associated with managed services and professional services. The professional services comprise deployment and integration, support and training, and consulting services. The market is also segmented on the basis of business application, end-user, organization size, deployment model, and region.
Reasons to Buy the Report
To get a comprehensive overview of the global insurance analytics market
To gain a wide range information about the top players in this marketspace, their product portfolios, and the key strategies adopted by them
To gain insights of the major countries/regions, in which the insurance analytics market is flourishing in various industry verticals