Artificial Intelligence (AI) for Insurance Market - Forecasts from 2024 to 2029

Artificial Intelligence (AI) for Insurance Market - Forecasts from 2024 to 2029

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.

AI FOR INSURANCE MARKET 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.

AI for Insurance Market Geographical Outlook:

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.

Reasons for buying this report:-

Insightful Analysis: Gain detailed market insights covering major as well as emerging geographical regions, focusing on customer segments, government policies and socio-economic factors, consumer preferences, industry verticals, other sub - segments.
Competitive Landscape: Understand the strategic maneuvers employed by key players globally to understand possible market penetration with the correct strategy.
Market Drivers & Future Trends: Explore the dynamic factors and pivotal market trends and how they will shape up future market developments.
Actionable Recommendations: Utilize the insights to exercise strategic decision to uncover new business streams and revenues in a dynamic environment.
Caters to a Wide Audience: Beneficial and cost-effective for startups, research institutions, consultants, SMEs, and large enterprises.

What do businesses use our reports for?

Industry and Market Insights, Opportunity Assessment, Product Demand Forecasting, Market Entry Strategy, Geographical Expansion, Capital Investment Decisions, Regulatory Framework & Implications, New Product Development, Competitive Intelligence

Report Coverage:

Historical data & forecasts from 2022 to 2029
Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
Competitive Positioning, Strategies, and Market Share Analysis
Revenue Growth and Forecast Assessment of segments and regions including countries
Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)

Market Segmentation:

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