Insurance Fraud Detection Market By Component (Solution, Services), By Deployment Mode (Cloud, On-Premise), By Application (Claims Fraud, Identity Theft, Payment Fraud And Billing Fraud, Money Laundering), By End-use Vertical (Automotive, Healthcare, It & Telecom, Energy & Utilities, Retail, Property & Real Estate, Others) - Growth, Future Prospects & Competitive Analysis, 2019 – 2027

Overview:                      

The global insurance fraud detection market was accounted at US$ 3.29 Bn in 2018 and is projected to witness significant growth, growing with a CAGR of 15.2% across the forecast period from 2019 to 2027. Digitization marked by increasing number of smart devices and social media activities is regularly changing the landscape for all sectors, including insurance. Insurance fraud has occurred and still occurs where insurance policies are inscribed, taking different forms to suit the economic times. Insurance fraud is one major concern for insurers which continues to increase year by year, globally. Most of the insurers continue to focus on claims fraud, but deceitful activities are prevailing through the entire insurance life cycle, right from the initial application process to claims.

The exponential upsurge in the intricacy of cyber-attacks in the insurance sector and considerable monetary losses due to these attacks are some of the major factors driving the insurance fraud detection market worldwide. Insurance fraud detection is challenging, known the diversity of fraud arrays and quite lesser ratio of known frauds in typical samples. Insurance frauds covers the range of inappropriate deeds which an individual or group commits to achieve an advantageous outcome from the insurance company. This could range from misrepresenting the situation, staging the incident including the relevant actors and the cause of incident and finally the extent of damage caused.

Traditional approaches such as red flag indicators, internal audits, scoring models, etc. are still being used by few insurers in this era of sophisticated and complex crimes. However, realizing the limitations of these traditional methods, many carriers have started adopting the state-of-the-art insurance fraud detection practices and anti-fraud technology for determining the likelihood of insurance fraud. Insurers are also increasingly adopting analytics in order to predict the occurrence of fraudulent claims. Increasing adoption is reflected in increased investments in data analytics by insurers. This in turn is expected to facilitate the overall insurance fraud detection market worldwide in the years to come.

Market Snapshot

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"Cloud to Outperform On-premise Deployment Mode in the Near Future"

In 2018, on-premise deployment mode held largest share in the global insurance fraud detection market. The dominance of on-premise solutions is largely accredited to the superior security and features offered over cloud-based solutions. Though the market is still observing a move from on-premise to cloud model and it is true that various organizations are willing to spend more money on cloud, but the fact remains that several organizations are still extensively dependent on on-premise deployment mode. Nevertheless, cloud offers myriad benefits and differs completely from on-premises solutions in one critical way. Cloud deployment allows companies to pay as-needed or pay-as-you-go basis and effectively helps in scaling up or down depending on the user requirements, overall usage, and the company’s growth. As a result of this, there has been significant increase in the adoption of cloud solutions, which in turn is expected to boost its growth during the forecast period from 2019 to 2027.

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"North America Garnered Largest Market Share in 2018"

In 2018, North America dominated the insurance fraud detection market in 2018 and is likely to continue with its sovereignty during the forecast period from 2019 to 2027. The growth of the region is mainly backed by U.S. as it holds majority of market share in the overall North America insurance fraud detection market. Insurance fraud is one of the biggest crimes in the U.S., reporting payout of US$ 80 Bn every year, imposing heavy costs on customers and insurers. According to the FBI, insurance fraud drains more than US$ 50 Bn from insurers every year and costs the average U.S. family between US$ 400 to US$ 700 in the form of increased premium. As a result, incessantly rising incidences of insurance frauds is thereby enhancing the regional growth of insurance fraud detection market. However, the Asia Pacific is expected to witness exponential growth and will be the fastest growing region during the forecast period from 2019 to 2027. Rising technology adoption in the insurance sector is supporting the market growth in the Asia Pacific region.

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Competitive Insights

The major players identified in the insurance fraud detection market include ACI Worldwide, Inc., BAE Systems, BRIDGEi2i Analytics, Experian Information Solutions, Inc., Fair Isaac Corporation (FICO), Fiserv, Inc., FRISS, International Business Machines Corporation, iovation Inc., Kount Inc., LexisNexis, Perceptiviti Data Solutions Pvt. Ltd., SAP SE, SAS Institute Inc., Simility, and Software AG among others. These players are continually focusing on expanding their reach and strengthening their product portfolio to cater the rising needs of the customers and also to maintain their leading position in the market. Partnerships and new product development remains some of the major strategies implemented by the major players in the insurance fraud detection market.

Historical & Forecast Period

The research report presents the analysis of each segment from 2017 to 2027 considering 2018 as the base year for the research. Compounded Annual Growth Rate (CAGR) for each respective segments calculated for the forecast period from 2019 to 2027.

Report Scope by Segments

Insurance fraud detection market report provides market size and estimates based on market dynamics and key trends observed in the industry. The report provides a holistic view of global insurance fraud detection market based on component, deployment mode, application, end-use vertical, and geography. Key segments covered in the report are as follows:

Key questions answered in this report

• What was the market size of insurance fraud detection market in 2018 and forecast up to 2027?
• What are the key factors driving the global insurance fraud detection market?
• What are the key market trends and high-growth opportunities observed in the insurance fraud detection market?
• What are the drivers of the insurance fraud detection market?
• Which is the largest regional market for insurance fraud detection market?
• Which segment will grow at a faster pace? Why?
• Which region will drive the market growth? Why?
• Which players are leading the insurance fraud detection market?
• What are the sustainability strategies adopted by the key players operating in the market?