The global insurance fraud detection market size was US$ 2.6 billion in 2021. The global insurance fraud detection market size is estimated to reach US$ 23.2 billion by 2030, growing at a compound annual growth rate (CAGR) of 24.2% during the forecast period from 2022 to 2030.
Insurance fraud detections goal is to protect insurers from incurring fraud-related losses and less loss is incurred only when fraud is noticed before being processed as it surges the rate at which insurers are identifying fraudulent claims. In todays economy where fraud is rising which is essential in cases of workers compensation because the sooner the fraud gets identified the quicker insurer can react and prevent any loss.
Factors Affecting Market Growth
The surge in demand for advanced analytics and technology due to increasing fraud-related losses by leading companies results in the growth of the global market.
The increase in cyber security infrastructure for insurance fraud detection by insurance companies is a primary driving element for the growth of the market.
The threat to the privacy of the clients and the improper handling of data by most insurance companies are some of the major elements limiting the market.
The adoption of machine learning and artificial intelligence in the detection of fraud in the insurance sector is expected to boost the global market.
Impact Analysis of COVID-19
During COVID-19 there was a rise in insurance fraud as investigations have moved to digital channels in large numbers. In addition, several insurance companies also claimed fraudulent activities and fake emails during the pandemic. Thus, many companies increased the adoption of artificial intelligence in the system due to the rise in fraudulent activities to manage these attacks and maintain privacy. As a result, COVID-19 had a favorable impact on the insurance fraud detection market.
Regional Analysis
Asia Pacific accounted for a notable market share in 2021 and is anticipated to remain dominant during the forecast period as the companies in the region are taking proactive steps with the adoption of developed technologies. Also, higher spending for improved shares management strategies and claims handling to ensure customer fulfillment and retention is expected to drive regional growth. Moreover, the rising awareness of fraud detection strategies is expected to boost the demand in the global market.
Leading Competitors
The prominent companies in the global insurance fraud detection market are:
SAS Institute Inc
LexisNexis Risk Solutions
IBM
Fiserv Inc
FRISS
FICO
Experian Information Solutions
Equifax Inc
Duck Creek Technologies
BAE Systems
Others
Segmentation Analysis
The global insurance fraud detection market focuses on Components, Deployment, Enterprise Size, Applications, and Region
Segmentation on the basis of Components
Solutions
Services
Segmentation on the basis of Deployment
Cloud
On-premises
Segmentation on the basis of Enterprise Size
Small and Medium Size Enterprises (SMEs)
Large Enterprises
Segmentation on the basis of Applications
Money Laundering
Claims Fraud
Identity Theft
Payment Fraud and Billing Fraud
Segmentation on the basis of Region
North America
The U.S.
Canada
Mexico
Europe
Western Europe
The UK
Germany
France
Italy
Spain
Rest of Western Europe
Eastern Europe
Poland
Russia
Rest of Eastern Europe
Asia Pacific
China
India
Japan
Australia & New Zealand
ASEAN
Rest of Asia Pacific
Middle East & Africa (MEA)
UAE
Saudi Arabia
South Africa
Rest of MEA
South America
Brazil
Argentina
Rest of South America