Insurance analytics is used for risk controlling in pricing, underwriting, ratings, claims reserving, and marketing in the insurance sector. Moreover, such analytics solutions help insurance companies to effectively manage the potential risk and also offer enhanced insurance contracts in the case of casualty, property, life, or health loss. Also, insurance analytics play a crucial role in reducing cost using predictive analytics in insurance models to offer sustainable reports across different product lines and optimizing the customer relationship processes.
The growing concentration of prominent leaders on enhancing the customer experience along with adopting the digitalization trend is the primary factor driving the growth of the global insurance analytics market. Moreover, the growing requirements of cloud-based digital solutions by insurers and the outbreak of Covid-19 have further accelerated the adoption rate of insurance analytics solutions in the organizations all across the globe to increase the customer engagement with exceptional digital experiences. Moreover, the surging requirements for predictive modeling capabilities and big data will steer the adoption of insurance analytics tools. Predictive analytics capabilities in insurance software assist in defining and delivering the information regarding new products and rate changes efficiently. Also, predictive analytics tools can gather data from different external and internal sources to improve the understanding of the predictive behavior of insureds. The adoption of advanced technologies like the internet of things insurance is likely to positively shape the trajectory of the global market during the forecast period as it facilitates interactive and innovative services to customers.
The global insurance analytics market can be segmented into end-user, application, enterprise, deployment type, component, and region.
By end-user, the market can be segmented into third-party administrators, government agencies, insurance companies, and others.
By application, the market can be segmented into sales & marketing, customer management, risk management, and others.
By enterprise size, the market can be segmented into large enterprises and small & medium enterprises.
By deployment type, the market can be segmented into cloud and on-premise deployment solutions.
By component, the market can be segmented into service and solution.
North America accounts for the largest share in the global insurance analytics market due to the presence of prominent market players in the region. The developments and innovations in the field of data analytics software will significantly drive the growth of the regional market in the forthcoming years.
Some of the significant players in the global insurance analytics market are Arceo.ai, CyberCube, Artivatic.ai, Habit Analytics, Pentation Analytics, RiskVille, ReFocus AI, InsuredMine, Applied Systems, Pegasystems, Hexaware Technologies, LexisNexis Risk Solutions, Guidewire Software, Board International, and Verisk Analytics. To cite, Verisk Analytics, Inc. invested USD 47.6 million in 2018 for research and development activities to proliferate and develop new product and service lines. Such action is likely to strengthen its position in the market.
