AI in Insurance Market Size is valued at USD 10.9 billion in 2023 and is predicted to reach USD 98.7 billion by the year 2031 at a 32.3% CAGR during the forecast period for 2024-2031.
AI in insurance is transforming how insurers operate by enhancing customer service, improving risk assessment, automating claims processing, and detecting fraud. AI-driven tools analyze large datasets to offer personalized insurance products and streamline operations. AI has the power to enhance decision-making in the insurance value chain in terms of precision, effectiveness, and client satisfaction. The insurance industry is seeing significant development and expansion due to various factors that are driving artificial intelligence (AI). These elements include the advancement of technology, the desire of customers for improved services, legal limitations, and competitive dynamics.
However, the high implementation cost of AI in insurance, technical challenges, and regulatory and compliance issues are factors that may slowdown the growth of the target market during the forecast period. Furthermore, increasing investment, novel product launches, and collaboration by prominent players are factors estimated to create lucrative development opportunities in terms of revenue for players operating in the AI in insurance market globally over the forecast period.
Competitive Landscape
Some Major Key Players In The AI in Insurance Market:
- Lemonade
- Tractable
- Shift Technology
- ZhongAn
- Metromile
- Slice Labs
- Insurify
- Trov
- PolicyGenius
- Hippo Insurance
- Snapsheet
- Atidot
- SAP SE
- IBM Corporation
- Salesforce, Inc.
- Oracle Corporation
- SAS Institute Inc.
- Microsoft Corporation
- Applied Systems
- Shift Technology
- SimpleFinance
- OpenText Corporation
- Quantemplate
- Slice Insurance Technologies
- Pegasystems Inc.
- Vertafore, Inc.
- Zego
- Other Market Players
Market Segmentation:
The AI in insurance market is segmented based on type, application and end user. Based on type, the market is segmented as machine learning, computer vision, natural language processing (NLP), expert systems and robotics. By application, the market is segmented into underwriting & risk assessment, claims processing & fraud detection, customer service and support, personalized marketing and sales and policy pricing and recommendations. The end user segment comprises insurance companies, insurance brokers and agents and reinsurance companies.
Based On Type, The Natural Language Processing (NLP) Segment Is Accounted As A Major Contributor To The AI In Insurance Market
The Natural Language Processing (NLP) category is expected to lead with a large share in the global AI in Insurance market. Chatbots & virtual assistants with natural language processing (NLP) capabilities offer 24/7 customer service, managing standard questions, policy modifications, and claims submissions without requiring human assistance. Their ability to comprehend and reply to customer inquiries promptly guarantees expedited resolution times and amplifies customer contentment. Additionally, NLP can retrieve pertinent data from unstructured data sources like social media, medical records, and customer reviews, giving underwriters thorough risk profiles.
The Claims Processing And Fraud Detection Segment Witnessed Growth At A Rapid Rate
The claims processing and fraud detection segment is estimated to grow rapidly in the global AI in Insurance market. Insurance companies' revenue growth is greatly accelerated by the integration of AI in fraud detection and claims processing, which lowers costs, increases customer happiness, and increases efficiency. It is anticipated that as AI technologies advance, they will have a greater influence on the insurance industry, resulting in new developments and benefits over competitors.
In The Region, North America AI In Insurance Market Holds A Significant Revenue Share.
The North America AI in Insurance market is expected to register the highest market revenue in the near future. As a result of growing investments and continuous technological breakthroughs, the AI insurance market in North America is predicted to continue growing rapidly. Furthermore, insurance companies are probably going to concentrate on creating AI apps that are better tailored to their customers, increasing operational effectiveness, and strengthening fraud detection systems. Expanding AI use in the insurance industry and spurring innovation will also be greatly aided by strategic alliances between insurtech startups, technology providers, and insurers. In addition, Asia Pacific is likely to grow rapidly in the global AI in Insurance market due to rising investment in advanced technology and focus on automation in insurance industry.
Recent Developments:
- In Apr 2024, Oracle Financial Services has launched a new product called Oracle Financial Services Compliance Agent. The AI-driven cloud solution allows banks to conduct cost-effective hypothetical scenario testing in order to fine-tune thresholds and controls for transaction sorting, detect illicit activities, and enhance compliance with regulatory requirements.
AI in Insurance Market Report Scope
|
Report Attribute |
Specifications |
|
Market Size Value In 2023 |
USD 10.9 Bn |
|
Revenue Forecast In 2031 |
USD 98.7 Bn |
|
Growth Rate CAGR |
CAGR of 32.3% from 2024 to 2031 |
|
Quantitative Units |
Representation of revenue in US$ Million and CAGR from 2024 to 2031 |
|
Historic Year |
2019 to 2023 |
|
Forecast Year |
2024-2031 |
|
Report Coverage |
The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
|
Segments Covered |
By Product, Application, End-User |
|
Regional Scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
|
Country Scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; France; Italy; Spain; South East Asia; South Korea |
|
Competitive Landscape |
Lemonade, Tractable, Shift Technology, ZhongAn, Metromile, Slice Labs, Insurify, Trov, PolicyGenius, Hippo Insurance, Snapsheet, Atidot, SAP SE, IBM Corporation, Salesforce, Inc., Oracle Corporation, SAS Institute Inc., Microsoft Corporation, Applied Systems, Shift Technology, SimpleFinance, OpenText Corporation, Quantemplate, Slice Insurance Technologies, Pegasystems Inc., Vertafore, Inc., Zego, and Others. |
|
Customization Scope |
Free customization report with the procurement of the report and modifications to the regional and segment scope. Particular Geographic competitive landscape. |
|
Pricing And Available Payment Methods |
Explore pricing alternatives that are customized to your particular study requirements. |
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