Artificial Intelligence (AI) For Insurance Market Size, Share, Opportunities, And Trends By Application (Fraud Detection, Risk Analysis, Customer Service, Claims Assessment, Others), By Sector (Life Insurance, Health Insurance, Title Insurance, Others), By Technology (Deep Learning, Machine Learning, Robotic Automation, Others), And By Geography - Forecasts From 2024 To 2029
- Published : Sep 2024
- Report Code : KSI061614384
- Pages : 150
The AI for insurance market is projected to witness a CAGR of 33.16% during the forecast period to reach a total market size of US$11.923 billion by 2029, up from US$2.848 billion in 2024.
Artificial Intelligence (AI) is increasingly penetrating the insurance industry, with insurers applying multiple AI solutions across their business. It is utilized in the automation of underwriting, i.e., to help insurers make more accurate decisions on whether they should insure an individual or entity and what kind of premium should be charged for each policy or form of coverage sought. This black box decision-making process has the potential to save millions and reduce truly fraudulent claims by identifying them right from the start. AI algorithms can ingest data from multiple resources like social media posts, financial statements, and patient medical records, and based on the data, they can compute the risk of insuring a particular policy.
Additionally, the solution can process large data volumes associated with claims history and policyholder behavior to identify certain patterns indicative of fraud. Many insurance organizations deploy chatbots and virtual agents for a self-serviceable experience of the policy that customers have purchased. For instance, it can allow customers to access their policy details, raise a claim, make/receive payments, and help with any FAQs around the clock. Blockchain, another technology becoming a buzzword for providing secure and trusted transaction record-keeping, is also gaining a focus in this sector. This process can aid insurance companies in protecting data privacy and security, eliminating traditional administrative burdens and costs, increasing transparency and efficiency, etc., leading to a rise in market expansion.
What are the artificial intelligence (AI) for insurance market growth drivers?
- The growing adoption of AI technology in telematics and IoT devices is predicted to boost the demand for AI in insurance globally.
The rapid growth in the use of telematics and the Internet of Things (IoT) has delivered large amounts of data that can be leveraged to improve underwriting and pricing. Using AI algorithms to analyze this data, the potential risk for a policy is calculated, and individualized pricing becomes even more accurate. With it, insurers will soon have access to significant amounts of data about policyholders, which could be used in assessing more personalized price lists on insurance policies.
Moreover, it can also be employed to detect insurance fraud. AI algorithms can verify a policyholder's driving behaviors against those stated in the application, such as information retrieved from a telematics device. AI algorithms can analyze this data and look for patterns associated with fraud, leading insurance companies to utilize the right method to protect themselves and increase transparency for better functioning.
- The increasing preference towards personalized insurance is anticipated to accelerate AI for the insurance market's growth.
As customers use more digital technology and information has become cataloged, the demand for personalization in insurance is gaining traction, including personalized policy suggestions and coverage that match the user's needs. The ability to provide increasingly customized insurance products at lower cost is being made possible by technological advances such as AI. Insurance companies can provide policies that align with each customer's requirements and budgets by analyzing large amounts of data through AI algorithms.
Moreover, this works by analyzing the user. For example, a user who exhibits safe driving habits, such as driving at reasonable speeds and not braking suddenly, would be offered a lower premium than someone with high-risk driving behavior. Metromile is a quickly growing usage-based car insurance provider that monitors driving characteristics through AI and telematics technology to offer tailored rates. The company's app monitors the user's mileage and driving habits so that insurance quotes are adjusted regularly to reflect how one drives.
What are the major challenges restraining artificial intelligence (AI) for insurance market?
- The laws and regulations involved in the insurance sector could hinder AI for insurance market expansion.
The insurance sector is very closely regulated, and the application of AI technology has to meet multiple laws. This can be quite difficult for insurance firms, sometimes involving a sizeable budget and overall investment. The insurance industry has been one of the slowest sectors in embracing new technology, and some companies tend to resist new technology and innovations. Moreover, while a trend towards more AI in the market is consistently growing, many traditional insurers appear to be prevaricating. At the same time, they assess how much such technology will cost and may expose them to financial risk.
What are the key geographical trends shaping the artificial intelligence (AI) for insurance market?
- The North American region is predicted to dominate the AI for insurance market share.
The increase in technological innovation adoption in North America, a region characterized by advanced technology development, will also have the greatest effect on the insurance industry. Insurance companies in the region have been quick to use AI for better operations and competitiveness. Moreover, the fast internet connection, modern data centers, and an overall top-notch IT service structure contribute to its advancement. These variables make for a suitable infrastructure that is easier to code and deploy.
The economic prosperity surrounding this region has enabled companies to invest billions of dollars in AI, purchasing and acquiring top talent worldwide who are building AI initiatives. This is resulting in regional insurance companies staying ahead of the curve. For instance, one of the largest insurance firms in North America, Allstate, employs AI for enhanced operations and customer experiences. Allstate is leveraging AI to analyze customer data and deliver personalized insurance services.
Additionally, most of the world's top insurance firms are headquartered in this region, and these firms have made huge contributions to AI in insurance growth and increased people's acceptance of AI in this sector. Thus, the regional players are realizing the value of AI in their operational backyards, talking to customers and buying AI tech.
Recent developments in the artificial intelligence (AI) for insurance market
- July 2024- Leading Indian private general insurer ICICI Lombard launched its health insurance product, ‘Elevate', driven by AI. A revolutionary and customizable product designed to meet the requirements of dynamic lifestyles, unforeseen medical emergencies, and inflation in hospital costs but with unique features and add-on solutions for the first time offered by an insurer.
Artificial Intelligence (AI) For Insurance Market Scope:
| Report Metric | Details |
| AI for Insurance Market Size in 2024 | US$2.848 billion |
| AI for Insurance Market Size in 2029 | US$11.923 billion |
| Growth Rate | CAGR of 33.16% |
| Study Period | 2019 to 2029 |
| Historical Data | 2019 to 2022 |
| Base Year | 2024 |
| Forecast Period | 2024 – 2029 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
|
| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in AI for Insurance Market |
|
| Customization Scope | Free report customization with purchase |
The AI for Insurance Market is segmented and analyzed as below:
- By Application
- Fraud Detection
- Risk Analysis
- Customer Service
- Claims Assessment
- Others
- By Sector
- Life Insurance
- Health Insurance
- Title Insurance
- Others
- By Technology
- Deep Learning
- Machine Learning
- Robotic Automation
- Others
- By Geography
- North America
- USA
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Others
- Europe
- Germany
- France
- United Kingdom
- Spain
- Others
- Middle East and Africa
- Saudi Arabia
- UAE
- Israel
- Others
- Asia Pacific
- China
- Japan
- India
- South Korea
- Indonesia
- Taiwan
- Others
- North America
1. INTRODUCTION
1.1. Market Overview
1.2. Market Definition
1.3. Scope of the Study
1.4. Market Segmentation
1.5. Currency
1.6. Assumptions
1.7. Base and Forecast Years Timeline
1.8. Key benefits for the stakeholders
2. RESEARCH METHODOLOGY
2.1. Research Design
2.2. Research Process
3. EXECUTIVE SUMMARY
3.1. Key Findings
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
4.5. Analyst View
5. AI FOR INSURANCE MARKET BY APPLICATION
5.1. Introduction
5.2. Fraud Detection
5.3. Risk Analysis
5.4. Customer Service
5.5. Claims Assessment
5.6. Others
6. AI FOR INSURANCE MARKET BY SECTOR
6.1. Introduction
6.2. Life Insurance
6.3. Health Insurance
6.4. Title Insurance
6.5. Others
7. AI FOR INSURANCE MARKET BY TECHNOLOGY
7.1. Introduction
7.2. Deep Learning
7.3. Machine Learning
7.4. Robotic Automation
7.5. Others
8. AI FOR INSURANCE MARKET BY GEOGRAPHY
8.1. Introduction
8.2. North America
8.2.1. By Application
8.2.2. By Sector
8.2.3. By Technology
8.2.4. By Country
8.2.4.1. USA
8.2.4.2. Canada
8.2.4.3. Mexico
8.3. South America
8.3.1. By Application
8.3.2. By Sector
8.3.3. By Technology
8.3.4. By Country
8.3.4.1. Brazil
8.3.4.2. Argentina
8.3.4.3. Others
8.4. Europe
8.4.1. By Application
8.4.2. By Sector
8.4.3. By Technology
8.4.4. By Country
8.4.4.1. Germany
8.4.4.2. France
8.4.4.3. United Kingdom
8.4.4.4. Spain
8.4.4.5. Others
8.5. Middle East and Africa
8.5.1. By Application
8.5.2. By Sector
8.5.3. By Technology
8.5.4. By Country
8.5.4.1. Saudi Arabia
8.5.4.2. UAE
8.5.4.3. Israel
8.5.4.4. Others
8.6. Asia Pacific
8.6.1. By Application
8.6.2. By Sector
8.6.3. By Technology
8.6.4. By Country
8.6.4.1. China
8.6.4.2. Japan
8.6.4.3. India
8.6.4.4. South Korea
8.6.4.5. Indonesia
8.6.4.6. Taiwan
8.6.4.7. Others
9. COMPETITIVE ENVIRONMENT AND ANALYSIS
9.1. Major Players and Strategy Analysis
9.2. Market Share Analysis
9.3. Mergers, Acquisitions, Agreements, and Collaborations
9.4. Competitive Dashboard
10. COMPANY PROFILES
10.1. Amelia US LLC
10.2. Microsoft Corporation
10.3. Amazon Web Services Inc.
10.4. IBM Corporation
10.5. Avaamo Inc.
10.6. Cape Analytics LLC
10.7. Wipro Limited
10.8. Acko General Insurance
10.9. Shift Technology
10.10. BIMA
Amelia US LLC
Microsoft Corporation
Amazon Web Services Inc.
IBM Corporation
Avaamo Inc.
Cape Analytics LLC
Wipro Limited
Acko General Insurance
Shift Technology
BIMA
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