Generative AI in Insurance Market Size is valued at USD 575.5 Mn in 2023 and is predicted to reach USD 5,598.4 Mn by the year 2031 at a 33.59% CAGR during the forecast period for 2024-2031.
A generative AI in the insurance sector is the application of powerful machine learning models to boost efficiency and accuracy in decision-making. This is essential for producing synthetic data, personalized products, and recommendations. Two key factors driving the industry ahead are the need for more efficient operations and the growing demand for personalized experiences. Responding to client demand for tailored insurance solutions, more and more insurers rely on AI technology to deliver specific suggestions and packages. Furthermore, modernization and international trade agreements might open new prospects for businesses worldwide, which can further promote market expansion. In addition, the market is anticipated to be propelled by increased government investments in research and development to optimize production & services processes.
However, the market growth is hindered by obstacles such as data privacy worries, expensive implementation expenses, a shortage of trained AI experts, problems with regulation and compliance, and the difficulty of incorporating AI into preexisting systems. Several variables can hinder adoption in this market. Global markets expanded during the coming years due to technological developments, widespread adoption of digital platforms, and the ever-increasing desire among consumers for novel goods and services.
Competitive Landscape
Some of the Major Key Players in the Generative AI in Insurance Market are
- Microsoft Corporation
- Amazon Web Services Inc.
- IBM Corporation
- Avaamo Inc
- Cape Analytics LLC
- MetLife
- Prudential Financial
- Wipro Limited
- ZhongAn
- Acko General Insurance
- Other Prominent Players
Market Segmentation:
The generative AI in the insurance market is segmented based on application and end-user. Based on application, the market is segmented into underwriting automation, risk assessment and management, fraud detection, customer service and engagement, and claim processing. By end-user, the market is segmented into insurance carriers, brokers and agents, and third-party administrators.
Based on the Application, the Underwriting Automation Segment is Accounted as a Major Contributor to the Generative AI in the Insurance Market
The underwriting automation generative AI in the insurance market is expected to hold a major global market share in 2023. Automating processes like risk evaluation, policy costs, and qualification decisions is made possible by generative AI, which allows insurers to make faster and more accurate decisions. Underwriting automation is the most lucrative market area because it allows insurers to optimize underwriting procedures, decrease human actions, and increase overall efficiency through sophisticated machine-learning models and the industry's overall market growth.
Insurance Carriers Segment to Witness Growth at a Rapid Rate
The insurance carriers segment is projected to grow rapidly in the global generative AI in the insurance market because better risk assessment models, faster claims processing, and customized insurance policies are becoming increasingly important. Carriers may improve their decision-making, fraud detection, and customer service by leveraging massive volumes of data with the help of generative AI. This boosts their efficiency and competitiveness in the market, especially in countries like the US, Germany, the UK, China, and India.
In the Region, the North American Generative AI in Insurance Market Holds a Significant Revenue Share
The North American generative AI in the insurance market is expected to register the highest market share in revenue in the near future. This can be attributed to the fact that for several reasons, including a highly developed healthcare IT infrastructure, increased spending by market participants, and supportive government programs. In addition, Asia Pacific is projected to grow rapidly in the insurance market's global artificial intelligence because of the growing funding for cutting-edge research and development in this area and growth in the middle class, which drives up demand for insurance. Insurance companies are increasingly turning to generative AI due to technological developments, and the trend toward digitalization will boost the market's growth.
Recent Developments:
- In January 2024, Aditya Birla Capital, a prominent financial company, hired Avaamo to implement an AI with universal capabilities. With the creation of “ABC Assist,” a comprehensive virtual assistant, they could fulfill all customer service requirements across group companies and entities.
- In January 2024, The Azati Launch Insurance Self-Service Portal gives customers regulated access to the company's core services, including policy administration, invoicing and payments, application and quote processing, claims management, and knowledge center resources through websites and mobile devices.
Convergence in Healthcare Market Report Scope
|
Report Attribute |
Specifications |
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Market Size Value In 2023 |
USD 575.5 Mn |
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Revenue Forecast In 2031 |
USD 5,598.4 Mn |
|
Growth Rate CAGR |
CAGR of 33.59% from 2024 to 2031 |
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Quantitative Units |
Representation of revenue in US$ Million and CAGR from 2024 to 2031 |
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Historic Year |
2019 to 2023 |
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Forecast Year |
2024-2031 |
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Report Coverage |
The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
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Segments Covered |
By Application, By End-user, By Region |
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Regional Scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
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Country Scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; France; Italy; Spain; South East Asia; South Korea |
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Competitive Landscape |
Microsoft Corporation, Amazon Web Services Inc., IBM Corporation, Avaamo Inc, Cape Analytics LLC, MetLife, Prudential Financial, Wipro Limited, ZhongAn, Acko General Insurance and Other Prominent Players |
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Customization Scope |
Free customization report with the procurement of the report and modifications to the regional and segment scope. Particular Geographic competitive landscape. |
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Pricing And Available Payment Methods |
Explore pricing alternatives that are customized to your particular study requirements. |
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