The global insurance fraud detection market size is estimated to account for USD 9.7 billion by 2025. The market is projected to grow at 13.7% CAGR as per Million Insights. Over the past few years, insurance fraud has emerged as a huge challenge for insurers. The rise in the number of fraudulent claims has resulted in a growing focus on the deployment of advance and effective detection solution. The advent of advance tools such as image screening, predictive analytics, self-learning models and text mining among others have immensely improved the insurance claim services and reduced the occurrence of fraudulent activities.
Claimants have been using sophisticated methods to defraud the insurers. This has led to coherent action by leading insurance providers companies against perpetrators. As estimated by FBI, the insurance companies suffer over USD 40 billion in losses due to defraud in an insurance claim in the United States. In addition, this has resulted in increased premium by USD 420 to 700 in a year per family in the country. Similarly, the Association of British Insurers has found over 113,000 fraudulent claims costing millions of dollars each year. Therefore, rise in the number of fraudulent activities has forced the governments to introduce stringent regulatory guidelines. The imposition of stringent regulatory measures are further estimated to drive the demand for the fraud detection system.
North America accounted for the highest share in the insurance fraud detection market in 2018 and the region would maintain its dominance in all likelihood. The presence of the number of solution providers in the region is driving regional growth. Asia Pacific is likely to register the highest growth rate over the forecast years owing to increasing awareness about reducing the fraudulent activities.
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Further key findings from the report suggest:
• In 2018, the solution division dominated the market and estimated to continue its position from 2019 to 2025.
• Managed services category is likely to be the fastest growing segment with CAGR of over 15%.
• In 2018, large enterprises held the highest share in the market owing to their increased customer base.
• Asia Pacific is anticipated to register the maximum growth over the forecast duration.
Million Insights has segmented the global insurance fraud detection market on the basis of component, solutions, services, deployment, organization and region:
Insurance Fraud Detection Component Outlook (Revenue, USD Million, 2015 - 2025)
Insurance Fraud Detection Solutions Outlook (Revenue, USD Million, 2015 - 2025)
• Fraud Analytics
• Governance, Risk, and Compliance (GRC)
Insurance Fraud Detection Services Outlook (Revenue, USD Million, 2015 - 2025)
• Professional Services
• Managed Services
Insurance Fraud Detection Deployment Outlook (Revenue, USD Million, 2015 - 2025)
Insurance Fraud Detection Organization Outlook (Revenue, USD Million, 2015 - 2025)
• Small & Medium Business (SMB)
• Large Enterprise
Insurance Fraud Detection Regional Outlook (Revenue, USD Million, 2015 - 2025)
• North America
• Asia Pacific
• Latin America