Dublin, Oct. 30, 2020 (GLOBE NEWSWIRE) -- The "Insurance Analytics Market - Growth, Trends, and Forecasts (2020 - 2025)" report has been added to ResearchAndMarkets.com's offering.
The insurance analytics market is expected to reach a CAGR of 12.6% during the forecast period 2020-2025
With information pouring into the organization, insurance companies are focusing and trying to turn vast data stores into actionable insight. Hence, creating a demand for companies to adopt an insurance analytics system to manage rapidly changing market environments and manage profitability by better decision-making.
Moreover, the increasing challenges faced by companies such as dealing with catastrophes, managing amplified risk, meeting the demands of greater regulatory scrutiny, a more informed and demanding customer base, and navigating through a still uncertain economic environment are further boosting the adoption of insurance analytics. According to IBM, Insurance organizations that have implemented advanced analytical solutions are outperforming the competition by 76%.
Further, the growing adoption of digital infrastructure and increasing fraudulent activities in the insurance industry drive the demand for analytics solutions. Using these analytical solutions, the company can focus on the customer's behavioral data by which the company can revise and reform new products and strategies to generate more sales. It can also empower the agents with tools to look for new business opportunities and retain existing customers.
Furthermore, technological advancements such as AI, Machine learning are adding value to these solutions. According to a study by Accenture, the implementation of AI in the financial sector could lead to a 31% increase in profitability rates by 2035. Moreover, AI will also enable to customize financial services delivered to clients, leading to enhanced customer experience. Hence, AI-based insurance analytics solutions can save financial institutions billions in cost and create billions in additional revenues, also reduces fraudulent activities.
With the outbreak of the COVID-19 crisis, there are structural shifts due to volatility, uncertainty, and depressed economic activity that have significant implications for the insurance industry. These shifts are forcing insurance providers to reimagine their business operations and customer experience. Moreover, the demand for digital interactions and better management of personal and health risks accelerates investments in digital and analytics solutions. Hence the market is expected to grow over the forecast period.
Key Market Trends
Increasing Risks And Fraudulent Activities Are Boosting the Adoption Of Insurance Analytics.
The insurance industry revolves around identifying and managing both human-made and natural disasters risks regularly. This uncertain risk creates considerable demand for integrated risk management, a combination of insight, control, and optimization of daily business practices. The insurance analytics solutions offer the essential insight required to improve risk management at all levels.
Moreover, insurance analytics can help in identifying, predicting, and minimizing fraud in underwriting and claims. For instance, Infinity Property & Casualty Corporation (IPACC) that specializes in drivers who have higher incidences of accidents and claims deployed IBM business analytics solutions. These solutions helped the company by reducing claims payments and automate access to accident information to speed investigations, leading to fewer fraudulent claims and lower costs.
Further, due to the rising digital population and their demands, players in the market are continuously driving innovation for mitigating risk and fraudulent activities. For instance, in June 2020, Nemesysco, a provider of voice analytics technologies and solutions, deployed a voice analytics solution LVA7 together with its local integration partner Softtek for the China Pacific Insurance Company (CPIC). CPIC field agents and individual investigators use LVA7 during the claims process to identify potential risks and reduce fraudulent claims.
Asia-Pacific to Witness Highest Growth
Asia-Pacific is expected to witness the fastest growth in the insurance analytics market, owing to increased take-up of analytics tools among consumers and businesses. The high adoption of digital infrastructure primarily drives the region's analytics markets due to the growing development in algorithm development, machine learning, and the rising need for the customer and behavioral analytics.
National governments play a pivotal role in the future growth of the insurance analytics market across the Asia-Pacific region by implementing initiatives to build more business confidence in the cloud. Leading the way in cloud readiness are countries like Hong Kong and Singapore, which have defined data privacy regulations and strong governmental support for the cloud.
Moreover, countries in the region have a strong base and growing insurance industry, further driving the growth for the market. According to IBEF, In India, the gross premium collected by life insurance companies in India increased from USD 39.7 billion in FY12 to USD 94.7 billion in FY20. During FY12-FY20, premiums from the new business of life insurance companies in India increased at a CAGR of 15% to reach USD 37 billion in FY20.
Due to the COVID-19 pandemic, the insurance distribution model is disrupted. The Asian insurers are adjusting governance and management and building new technical capabilities to satisfy the growing customer needs. For instance, China has experienced a dramatic increase in health insurance-related activities as a result of COVID-19. Ping An Good Doctor, the world's leading healthcare ecosystem platform, saw 1.11 billion visits between late January and early February 2020. These instances are likely to fuel up the market growth.
The insurance analytics market is moderately fragmented. Players tend to invest in innovating their product offerings to cater to the insurance industry's changing demands. Moreover, players adopt strategic activities like partnerships, mergers, and acquisitions to expand their presence. Some of the recent developments in the market are:
In June 2020 - Merchants Insurance Group has adopted eDocs and Messages download via IVANS, a division of Applied Systems, to automate the exchange of policy-related documents and communications. Leveraging eDocs and Messages download, Merchants Insurance Group can support their agents' digital demands to increase ease of doing business while working remotely by providing access to the latest documents and communications directly in their management systems.
In April 2020 - OpenText Corporation had a strategic collaboration agreement with Amazon Web Services (AWS). Through this agreement, OpenText can provide customers more excellent choice in deploying their business-critical information management solutions.
Key Topics Covered:
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHT
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Assessment on the Impact of COVID-19 on the Market
5 MARKET SEGMENTATION
5.1 By Component
5.2 By Business Applications (Qualitative Analysis)
5.2.1 Claims Management
5.2.2 Risk Management
5.2.3 Process Optimization
5.2.4 Customer Management and Personalization
5.3 By Deployment Mode
5.4 By End-User
5.4.1 Insurance Companies
5.4.2 Government Agencies
5.4.3 Third-party Administrators, Brokers, and Consultancies
6 COMPETITIVE LANDSCAPE
6.1 Key Vendor Profiles
6.1.1 IBM Corporation
6.1.2 LexisNexis Risk Solutions
6.1.3 Hexaware Technologies Limited
6.1.4 Guidewire Software Inc.
6.1.5 Applied Systems Inc.
6.1.6 Microsoft Corporation
6.1.7 MicroStrategy Incorporated
6.1.8 OpenText Corporation
6.1.9 Oracle Corporation
6.1.10 Sapiens International Corporation
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
For more information about this report visit https://www.researchandmarkets.com/r/osev2i
Research and Markets also offers Custom Research services providing focused, comprehensive and tailored research.
CONTACT: CONTACT: ResearchAndMarkets.com Laura Wood, Senior Press Manager firstname.lastname@example.org For E.S.T Office Hours Call 1-917-300-0470 For U.S./CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900