Dublin, Jan. 22, 2026 (GLOBE NEWSWIRE) -- The "Insurance Analytics - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.
The insurance analytics market, poised for significant growth, is projected to increase from USD 13.29 billion in 2025 to USD 15.37 billion in 2026, reaching USD 31.76 billion by 2031 at a 15.64% CAGR. This expansion is driven by regulatory demands for real-time reporting, IoT-driven data proliferation, and the optimization of underwriting and claims processes.
Rising climate-risk quantification, embedded-insurance partnerships, and the democratization of cloud tools further fuel this trend. Incumbent technology vendors are integrating AI into core systems, while insurtech companies target niche markets like fraud and parametric coverage. Despite data privacy challenges and a talent shortage, insurers gain from clarified AI governance frameworks, especially in North America and the EU.
Increased Adoption of Advanced Technologies
The AI deployment among insurers surged in 2024, with substantial adoption across auto, home, and life insurance. Companies like IBM incorporated generative AI into underwriting and claims processes, enhancing automation. Cloud-first platforms now offer comprehensive AI capabilities, transforming unstructured data into real-time risk assessments. Regulatory nods for AI usage bolstered enterprise infrastructure spending, further driving market growth.
Rise in Competition Among Insurers
Digital-only insurers equipped with AI pricing engines are pressuring traditional carriers to innovate. As venture capital shifts toward insurtechs with real-time data capabilities, incumbents are responding with acquisitions and strategic partnerships, enhancing their systems and data integration efforts. This competition turns C-suite focus to analytical differentiation, increasing demand for modular risk-scoring systems.
Stringent Data-Privacy and Governance Regulations
The EU AI Act and GDPR have classified many analytics functions as high risk, necessitating rigorous compliance measures across jurisdictions. These regulations increase project timelines and compliance costs, especially impacting smaller firms, ultimately affecting the market's growth rate. Carrier strategy adjustments are needed to navigate these regulatory hurdles effectively.
Other Market Drivers and Restraints:
- Increasing volume of data streams
- Demand for climate-risk quantification
- Concerns over cybersecurity and data breaches
Segment Analysis
The tools segment dominated the market with USD 9.01 billion in 2025, reflecting insurers' preference for strategic control of data. Services, though smaller, grow at 14.6% CAGR due to interest in AI governance and multi-cloud optimization. The growing demand for consultancy and outcome-based pricing bolsters service growth.
Claims management led with a 34.12% market share in 2025, driven by engines enhancing adjuster productivity. Fraud detection solutions, benefiting from anomaly-detection networks, exhibit rapid growth at 18.95% CAGR. These systems significantly reduce loss costs, appealing to financial stakeholders.
API-first fraud platforms are becoming the norm, integrating seamlessly with third-party data, subsequently reshaping the market as fraud controls become pinpointed regulatory concerns.
Geographical Insights
North America dominated with a 38.02% share in 2025, supported by solid cloud adoption and regulatory clarity, fostering tech investments. Asia-Pacific is set for a 16.25% CAGR, fueled by digital-insurance growth in China, India, and Southeast Asia. Regional partnerships and government support are pivotal to its expansion.
Despite regulatory hurdles, Europe maintains balanced growth. Carriers invest in explainable-AI tools to comply with EU standards while harnessing underwriting insights. Nordic insurers lead with climate and embedded-insurance innovations, potentially influencing broader adoption trends across Europe.
Key Topics Covered
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Value Chain Analysis
4.5 Regulatory Landscape
4.6 Technological Outlook
4.7 Porter's Five Forces
4.8 Industry Ecosystem Analysis
4.9 Key Use Cases and Case Studies
4.10 Assessment of Macroeconomic Trends
4.11 Investment Analysis
5 MARKET SEGMENTATION
5.1 By Component
5.2 By Business Application
5.3 By Deployment Mode
5.4 By End-User
5.5 By Insurance Line
5.6 By Organization Size
5.7 By Geography
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles
7 MARKET OPPORTUNITIES AND FUTURE OUTLOOK
7.1 White-space and Unmet-Need Assessment
A selection of companies mentioned in this report includes, but is not limited to:
- IBM Corporation
- Oracle Corporation
- SAP SE
- SAS Institute Inc.
- Microsoft Corporation
- Guidewire Software Inc.
- LexisNexis Risk Solutions (RELX plc)
- Hexaware Technologies Ltd.
- Applied Systems Inc.
- Sapiens International Corporation N.V.
- OpenText Corporation
- MicroStrategy Incorporated
- Verisk Analytics, Inc.
- Salesforce, Inc. (Tableau)
- Accenture plc
- Cognizant Technology Solutions Corp.
- BAE Systems plc
- Palantir Technologies Inc.
- Fair Isaac Corporation (FICO)
- DataRobot, Inc.
- Optum, Inc. (UnitedHealth Group)
For more information about this report visit https://www.researchandmarkets.com/r/ozrqv4
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