Insurance analytics is the process of analyzing data from multiple, disparate data sources to produce accurate, consistent, and more useful information to organizations. It seamlessly detects and combines the insurance data to generate improved information and provide new insights that could be shared with the authorized users for better decision-making. Insurance analytics is a collection of multiple big data sources, which delivers a comprehensive view of customer and insurance data across an organization. It offers crucial benefits to enterprises, such as reducing inevitable losses, creating new opportunities, saving expenditures by detecting frauds, and increasing efficiency by integrating various data sources. MarketsandMarkets expects the global insurance analytics market size to reach USD 11.96 billion by 2023, growing at a Compound Annual Growth Rate (CAGR) of 12.5% during the forecast period (2018–2023). The major growth drivers of the insurance analytics market include the rapid adoption of data-driven decision-making and the increasing adoption of advanced analytics techniques
Several organizations across various sectors have utilized insurance analytics tools to integrate customer and insurance data for seamless operations. However, there are 2 specific aspects of industries that make insurance analytics a perfect fit. First, growing market pressures, such as global rivalry, regulations, slender margins, and quickened design cycles, which compel organizations to take quick data-driven decisions in real time. Second, owing to rapid digitization, more data is generated by systems, devices, equipment, automation, and products than ever before, which requires thorough collaboration mediums for real-time analysis. Hence, organizations have adopted insurance analytics to gather valuable insights that would simplify and streamline the decision-making process in the industry.
Some of the major applications that insurance analytics caters to include claims management, risk management, process optimization, customer management and personalization, and others (fraud detection and workforce management). The customer management and personalization applications is expected to record the highest CAGR during 2018–2023. The insurance analytics tools and services are widely used by insurance companies, government agencies, and third-party administrators, brokers, and consultancies. The third-party administrators, brokers, and consultancies segment is expected to grow at the highest CAGR during the forecast period.
The region-specific market analysis includes industry trends, market potential, and market forecast based on component, business application, end-user, deployment model, organization size, and industry vertical. Asia Pacific (APAC) is expected to be the fastest-growing region in the insurance analytics market during the forecast period.
Globally, insurance analytics adoption has increased due to the growing need to manage and analyze insurance data across the APAC and Latin American regions. IBM (US), Microsoft (US), Oracle (US), SAP SE (Germany), Salesforce (US), SAS Institute (US), OpenText (Canada), Verisk Analytics (US), Tableau Software (US), Pegasystems (US), Hexaware (India), Guidewire (US), MicroStrategy (US), Sapiens International (Israel), LexisNexis (US), Palantir (US), TIBCO Software (US), Applied Systems (US), Birst (US), BOARD International (Switzerland), Mitchell International (US), QlikTech (US), Vertafore (US), PrADS Inc. (US), and Bridgei2i (India) offer a competitive insurance analytics portfolio across these regions.
