Insurance Fraud Detection Market

Overview: 

The global insurance fraud detection market was valued at US$ 3.29 billion in 2018 and is projected to witness significant growth, growing at a CAGR of 15.2% across the forecast period from 2019 to 2027. Digitization, marked by an 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 after year globally. Most insurers continue to focus on claims fraud, but deceptive activities are prevalent throughout 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, given the diversity of fraud arrays and the relatively low ratio of known frauds in typical samples. Insurance fraud covers the range of inappropriate deeds that 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 the incident, and finally determining the extent of damage caused.

Traditional approaches, such as red flag indicators, internal audits, scoring models, etc., are still being used by a few insurers in this era of sophisticated and complex crimes. However, realizing the limitations of these traditional methods, many carriers have started adopting 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 by insurers in data analytics. This, in turn, is expected to facilitate the overall insurance fraud detection market worldwide in the years to come.

Market Snapshot

Cloud to Outperform On-Premise Deployment Mode in the Near Future

In 2018, the on-premise deployment mode held the largest share of the global insurance fraud detection market. The dominance of on-premise solutions is largely attributed to the superior security and features offered over cloud-based solutions. Though the market is still observing a shift from on-premise to cloud deployment models, and it is true that various organizations are willing to spend more money on the cloud, the fact remains that several organizations are still extensively dependent on on-premise deployment modes. Nevertheless, the cloud offers myriad benefits and differs completely from on-premises solutions in one critical way. Cloud deployment allows companies to pay as-needed or on a 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 a significant increase in the adoption of cloud solutions, which is expected to boost its growth during the forecast period from 2019 to 2027.

North America Garnered the Largest Market Share in 2018

In 2018, North America dominated the insurance fraud detection market and was likely to continue with its sovereignty during the forecast period from 2019 to 2027. The growth of the region is mainly backed by the U.S., as it holds the majority of its market share in the overall North American insurance fraud detection market. Insurance fraud is one of the biggest crimes in the U.S., with a reported payout of $80 billion every year, imposing high costs on customers and insurers. According to the FBI, insurance fraud drains more than US$ 50 billion from insurers every year and costs the average U.S. family between US$ 400 and US$ 700 in the form of increased premiums. As a result, the incessantly rising incidences of insurance fraud are thereby enhancing the regional growth of the 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 market growth in the Asia Pacific region.

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 to the rising needs of customers and to maintain their leading position in the market. Partnerships and new product development remain some of the major strategies implemented by the major players in the insurance fraud detection market.

Historical and Forecast Period

The research report presents the analysis of each segment from 2017 to 2027, considering 2018 as the base year for the research. The compound annual growth rate (CAGR) for each of the respective segments is calculated for the forecast period from 2019 to 2027.

Report Scope by Segments

The 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 the 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 are answered in this report.

• What was the size of the insurance fraud detection market in 2018, and what is the 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?
• Which segment will grow at a faster pace? Why?
• Which region will drive the market’s 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?

1. Preface
1.1. Report Description
1.1.1. Purpose of the Report
1.1.2. Target Audience
1.1.3. USP and Key Offerings
1.2. Research Scope
1.3. Research Methodology
1.3.1. Phase I – Secondary Research
1.3.2. Phase II – Primary Research
1.3.3. Phase III – Expert Panel Review
1.3.4. Approach Adopted
1.3.4.1. Top-Down Approach
1.3.4.2. Bottom-Up Approach
1.3.5. Assumptions
1.4. Market Segmentation

2. Executive Summary
2.1. Market Snapshot: Global IFD Market
2.2. Global IFD Market, by Component, 2018 (US$ Bn)
2.3. Global IFD Market, by Deployment Mode, 2018 (US$ Bn)
2.4. Global IFD Market, by Application, 2018 (US$ Bn)
2.5. Global IFD Market, by End-use Vertical, 2018 (US$ Bn)
2.6. Global IFD Market, by Geography, 2018 (US$ Bn)

3. Market Dynamics
3.1. Introduction
3.1.1. Global IFD Market Value, 2017-2027, (US$ Bn)
3.2. Market Dynamics
3.2.1. Market Drivers
3.2.2. Market Restraints
3.3. Attractive Investment Proposition, by Geography, 2018
3.4. Market Positioning of Key Players, 2018
3.4.1. Major Strategies Adopted by Key Players

4. Global Insurance Fraud Detection (IFD) Market, by Component , 2017-2027 (US$ Bn)
4.1. Overview
4.2. Solution
4.2.1. Fraud Analytics
4.2.2. Authentication
4.2.3. Governance, Risk and Compliance
4.2.4. Others
4.3. Services

5. Global Insurance Fraud Detection (IFD) Market, by Deployment Mode, 2017-2027 (US$ Bn)
5.1. Overview
5.2. Cloud
5.3. On-premise

6. Global Insurance Fraud Detection (IFD) Market, by Application, 2017-2027 (US$ Bn)
6.1. Overview
6.2. Claims Fraud
6.3. Identity Theft
6.4. Payment Fraud and Billing Fraud
6.5. Money Laundering

7. Global Insurance Fraud Detection (IFD) Market, by End-use Vertical, 2017-2027 (US$ Bn)
7.1. Overview
7.2. Automotive
7.3. Banking, Financial Services & Insurance (BFSI)
7.4. Healthcare
7.5. IT & Telecom
7.6. Energy & Utilities
7.7. Retail
7.8. Property & Real Estate
7.9. Others (Manufacturing, etc.)

8. North America Insurance Fraud Detection (IFD) Market Analysis, 2017-2027 (US$ Bn)
8.1. Overview
8.1.1. North America IFD Market Value and Growth, 2017-2027, (US$ Bn)
8.2. North America IFD Market Value, By Component, 2017-2027 (US$ Bn)
8.2.1. Market Analysis
8.3. North America IFD Market Value, By Deployment Mode, 2017-2027 (US$ Bn)
8.3.1. Market Analysis
8.4. North America IFD Market Value, By Application, 2017-2027 (US$ Bn)
8.4.1. Market Analysis
8.5. North America IFD Market Value, By End-use Vertical, 2017-2027 (US$ Bn)
8.5.1. Market Analysis
8.6. North America IFD Market Value, By Region/Country, 2017-2027 (US$ Bn)
8.6.1. Market Analysis
8.6.2. U.S.
8.6.3. Rest of North America

9. Europe Insurance Fraud Detection (IFD) Market Analysis, 2017-2027 (US$ Bn)
9.1. Overview
9.1.1. Europe IFD Market Value and Growth, 2017-2027, (US$ Bn)
9.2. Europe IFD Market Value, By Component, 2017-2027 (US$ Bn)
9.2.1. Market Analysis
9.3. Europe IFD Market Value, By Deployment Mode, 2017-2027 (US$ Bn)
9.3.1. Market Analysis
9.4. Europe IFD Market Value, By Application, 2017-2027 (US$ Bn)
9.4.1. Market Analysis
9.5. Europe IFD Market Value, By End-use Vertical, 2017-2027 (US$ Bn)
9.5.1. Market Analysis
9.6. Europe IFD Market Value, By Region/Country, 2017-2027 (US$ Bn)
9.6.1. Market Analysis
9.6.2. U.K.
9.6.3. Germany
9.6.4. France
9.6.5. Rest of Europe

10. Asia Pacific Insurance Fraud Detection (IFD) Market Analysis, 2017-2027 (US$ Bn)
10.1. Overview
10.1.1. Asia Pacific IFD Market Value and Growth, 2017-2027, (US$ Bn)
10.2. Asia Pacific IFD Market Value, By Component, 2017-2027 (US$ Bn)
10.2.1. Market Analysis
10.3. Asia Pacific IFD Market Value, By Deployment Mode, 2017-2027 (US$ Bn)
10.3.1. Market Analysis
10.4. Asia Pacific IFD Market Value, By Application, 2017-2027 (US$ Bn)
10.4.1. Market Analysis
10.5. Asia Pacific IFD Market Value, By End-use Vertical, 2017-2027 (US$ Bn)
10.5.1. Market Analysis
10.6. Asia Pacific IFD Market Value, By Region/Country, 2017-2027 (US$ Bn)
10.6.1. Market Analysis
10.6.2. Japan
10.6.3. China
10.6.4. India
10.6.5. Rest of Asia Pacific

11. Rest of the World Insurance Fraud Detection (IFD) Market Analysis, 2017-2027 (US$ Bn)
11.1. Overview
11.1.1. Rest of the World IFD Market Value and Growth, 2017-2027, (US$ Bn)
11.2. Rest of the World IFD Market Value, By Component, 2017-2027 (US$ Bn)
11.2.1. Market Analysis
11.3. Rest of the World IFD Market Value, By Deployment Mode, 2017-2027 (US$ Bn)
11.3.1. Market Analysis
11.4. Rest of the World IFD Market Value, By Application, 2017-2027 (US$ Bn)
11.4.1. Market Analysis
11.5. Rest of the World IFD Market Value, By End-use Vertical, 2017-2027 (US$ Bn)
11.5.1. Market Analysis
11.6. Rest of the World IFD Market Value, By Region, 2017-2027 (US$ Bn)
11.6.1. Market Analysis
11.6.2. Middle East & Africa
11.6.3. Latin America

12. Company Profiles
12.1. ACI Worldwide, Inc.
12.2. BAE Systems
12.3. BRIDGEi2i Analytics
12.4. Experian Information Solutions, Inc.
12.5. Fair Isaac Corporation (FICO)
12.6. Fiserv, Inc.
12.7. FRISS
12.8. International Business Machines Corporation
12.9. iovation Inc.
12.10. Kount Inc.
12.11. LexisNexis
12.12. Perceptiviti Data Solutions Pvt. Ltd.
12.13. SAP SE
12.14. SAS Institute Inc.
12.15. Simility
12.16. Software AG

List of Figures

FIG. 1 Global Insurance Fraud Detection (IFD) Market: Research Methodology
FIG. 2 Market Size Estimation – Top-Down and Bottom Up Approach
FIG. 3 Global IFD Market Segmentation
FIG. 4 Global IFD Market, by Component, 2018 (US$ Bn)
FIG. 5 Global IFD Market, by Deployment Mode, 2018 (US$ Bn)
FIG. 6 Global IFD Market, by Application, 2018 (US$ Bn)
FIG. 7 Global IFD Market, by End-use Vertical, 2018 (US$ Bn)
FIG. 8 Global IFD Market, by Geography, 2018 (US$ Bn)
FIG. 9 Global IFD Market Value, 2017-2027, (US$ Bn) and (Y-o-Y%)
FIG. 10 Attractive Investment Proposition, by Geography, 2018
FIG. 11 Global Market Positioning of Key IFD Providers, 2018
FIG. 12 Global IFD Market Value Share, by Component, 2018 & 2027 (Value %)
FIG. 13 Global IFD Solution Market Value, 2017-2027, (US$ Bn)
FIG. 14 Global IFD Services Market Value, 2017-2027, (US$ Bn)
FIG. 15 Global IFD Market Value Share, by Deployment Mode, 2018 & 2027 (Value %)
FIG. 16 Global Cloud IFD Market Value, 2017-2027, (US$ Bn)
FIG. 17 Global On-premise IFD Market Value, 2017-2027, (US$ Bn)
FIG. 18 Global IFD Market Value Share, by Application, 2018 & 2027 (Value %)
FIG. 19 Global IFD Market Value for Claims Fraud, 2017-2027, (US$ Bn)
FIG. 20 Global IFD Market Value for Identity Theft, 2017-2027, (US$ Bn)
FIG. 21 Global IFD Market Value for Payment Fraud and Billing Fraud, 2017-2027, (US$ Bn)
FIG. 22 Global IFD Market Value for Money Laundering, 2017-2027, (US$ Bn)
FIG. 23 Global IFD Market Value Share, by End-use Vertical, 2018 & 2027 (Value %)
FIG. 24 Global IFD Market Value for Automotive, 2017-2027, (US$ Bn)
FIG. 25 Global IFD Market Value for Banking, Financial Services & Insurance (BFSI), 2017-2027, (US$ Bn)
FIG. 26 Global IFD Market Value for Healthcare, 2017-2027, (US$ Bn)
FIG. 27 Global IFD Market Value for IT & Telecom, 2017-2027, (US$ Bn)
FIG. 28 Global IFD Market Value for Energy & Utilities, 2017-2027, (US$ Bn)
FIG. 29 Global IFD Market Value for Retail, 2017-2027, (US$ Bn)
FIG. 30 Global IFD Market Value for Property & Real Estate, 2017-2027, (US$ Bn)
FIG. 31 Global IFD Market Value for Others, 2017-2027, (US$ Bn)
FIG. 32 North America IFD Market Value, 2017-2027, (US$ Bn)
FIG. 33 Europe IFD Market Value, 2017-2027, (US$ Bn)
FIG. 34 Asia Pacific IFD Market Value, 2017-2027, (US$ Bn)
FIG. 35 RoW IFD Market Value, 2017-2027, (US$ Bn)

List of Tables

TABLE 1 Market Snapshot: Global Insurance Fraud Detection (IFD) Market Value
TABLE 2 Impact Indicators
TABLE 3 Impact Analysis of Drivers and Restraints
TABLE 4 Global IFD Market, by Component, 2017-2027 (US$ Bn)
TABLE 5 Global IFD Market, by Deployment Mode, 2017-2027 (US$ Bn)
TABLE 6 Global IFD Market, by Application, 2017 – 2027 (US$ Bn)
TABLE 7 Global IFD Market, by End-use Vertical, 2017 – 2027 (US$ Bn)
TABLE 8 Global IFD Market, by Geography, 2017-2027 (US$ Bn)
TABLE 9 North America IFD Market, by Component, 2017-2027 (US$ Bn)
TABLE 10 North America IFD Market, by Deployment Mode, 2017-2027 (US$ Bn)
TABLE 11 North America IFD Market, by Application, 2017 – 2027 (US$ Bn)
TABLE 12 North America IFD Market, by End-use Vertical, 2017 – 2027 (US$ Bn)
TABLE 13 North America IFD Market Value, by Region/Country, 2017-2027 (US$ Bn)
TABLE 14 Europe IFD Market, by Component, 2017-2027 (US$ Bn)
TABLE 15 Europe IFD Market, by Deployment Mode, 2017-2027 (US$ Bn)
TABLE 16 Europe IFD Market, by Application, 2017 – 2027 (US$ Bn)
TABLE 17 Europe IFD Market, by End-use Vertical, 2017 – 2027 (US$ Bn)
TABLE 18 Europe IFD Market Value, by Region/Country, 2017-2027 (US$ Bn)
TABLE 19 Asia Pacific IFD Market, by Component, 2017-2027 (US$ Bn)
TABLE 20 Asia Pacific IFD Market, by Deployment Mode, 2017 -2027 (US$ Bn)
TABLE 21 Asia Pacific IFD Market, by Application, 2017 – 2027 (US$ Bn)
TABLE 22 Asia Pacific IFD Market, by End-use Vertical, 2017 – 2027 (US$ Bn)
TABLE 23 Asia Pacific IFD Market Value, by Region/Country, 2017-2027 (US$ Bn)
TABLE 24 Rest of the World IFD Market, by Component, 2017-2027 (US$ Bn)
TABLE 25 Rest of the World IFD Market, by Deployment Mode, 2017-2027 (US$ Bn)
TABLE 26 Rest of the World IFD Market, by Application, 2017 – 2027 (US$ Bn)
TABLE 27 Rest of the World IFD Market, by End-use Vertical, 2017 – 2027 (US$ Bn)
TABLE 28 Rest of the World IFD Market Value, by Region, 2017-2027 (US$ Bn)
TABLE 29 ACI Worldwide, Inc.: Company Snapshot (Business Description; Product Portfolio; Financial Information; Business Overview and Recent Development)
TABLE 30 BAE Systems: Company Snapshot (Business Description; Product Portfolio; Financial Information; Business Overview and Recent Development)
TABLE 31 BRIDGEi2i Analytics: Company Snapshot (Business Description; Product Portfolio; Financial Information; Business Overview and Recent Development)
TABLE 32 Experian Information Solutions, Inc.: Company Snapshot (Business Description; Product Portfolio; Financial Information; Business Overview and Recent Development)
TABLE 33 Fair Issac Corporation (FICO): Company Snapshot (Business Description; Product Portfolio; Financial Information; Business Overview and Recent Development)
TABLE 34 Fiserv, Inc.: Company Snapshot (Business Description; Product Portfolio; Financial Information; Business Overview and Recent Development)
TABLE 35 FRISS: Company Snapshot (Business Description; Product Portfolio; Financial Information; Business Overview and Recent Development)
TABLE 36 International Business Machines Corporation: Company Snapshot (Business Description; Product Portfolio; Financial Information; Business Overview and Recent Development)
TABLE 37 iovation Inc.: Company Snapshot (Business Description; Product Portfolio; Financial Information; Business Overview and Recent Development)
TABLE 38 Kount Inc.: Company Snapshot (Business Description; Product Portfolio; Financial Information; Business Overview and Recent Development)
TABLE 39 LexisNexis: Company Snapshot (Business Description; Product Portfolio; Financial Information; Business Overview and Recent Development)
TABLE 40 Perceptive Data Solutions Pvt. Ltd.: Company Snapshot (Business Description; Product Portfolio; Financial Information; Business Overview and Recent Development)
TABLE 41 SAP SE: Company Snapshot (Business Description; Product Portfolio; Financial Information; Business Overview and Recent Development)
TABLE 42 SAS Institute Inc.: Company Snapshot (Business Description; Product Portfolio; Financial Information; Business Overview and Recent Development)
TABLE 43 Simility: Company Snapshot (Business Description; Product Portfolio; Financial Information; Business Overview and Recent Development)
TABLE 44 Software AG: Company Snapshot (Business Description; Product Portfolio; Financial Information; Business Overview and Recent Development)