The global insurance analytics market was valued at USD 13.84 billion in 2024 and is projected to expand at a robust compound annual growth rate (CAGR) of 14.7% from 2025 to 2030. This rapid growth is primarily driven by the increasing integration of advanced analytics and data-driven decision-making across the insurance industry. Insurers are increasingly leveraging analytics to enhance underwriting accuracy, streamline claims processing, detect fraudulent activities, and improve customer experience, all of which are contributing to overall market expansion.

Another significant factor fueling market growth is the rising adoption of insurance analytics tools and services by small- and medium-sized enterprises (SMEs). These organizations are recognizing the value of real-time data insights and predictive analytics in improving risk assessment and optimizing operational efficiency. As a result, the use of data analytics is no longer limited to large corporations, but is becoming increasingly accessible and impactful for smaller players in the insurance ecosystem.

The growing need for accurate and efficient risk management is a key driver of the insurance analytics industry. Insurers are increasingly relying on advanced analytics to strengthen underwriting processes and minimize potential financial losses. By harnessing vast volumes of data, analytics tools enable insurers to make more precise risk assessments, improving decision-making and overall portfolio performance.

The widespread adoption of artificial intelligence (AI) and machine learning (ML) is significantly transforming the insurance sector. These technologies empower companies with predictive insights that facilitate automation of traditionally manual tasks—such as claims processing, policy administration, and fraud detection. This not only enhances operational efficiency but also reduces processing times and administrative costs, providing insurers with a competitive edge.

Additionally, the market is witnessing growing demand for personalized, data-driven customer experiences. Modern policyholders expect customized products and seamless digital interactions. Insurance analytics enables insurers to deliver tailored offerings, streamline communication, and improve client satisfaction. Through data insights, companies can anticipate customer needs, identify behavior patterns, and create targeted marketing campaigns—ultimately boosting customer retention and loyalty.

For distributors and agents, analytics platforms offer valuable tools to uncover business opportunities and enhance client engagement. These technologies help identify upselling and cross-selling prospects, track policyholder behavior, and deliver more relevant services. Moreover, analytics helps reduce customer handling time, streamline service delivery, and minimize instances of fraud—factors that collectively contribute to rising market demand.

Regulatory compliance is another critical factor propelling the adoption of insurance analytics. As global regulatory environments become more stringent, insurers face mounting pressure to ensure data transparency, maintain detailed records, and generate accurate reports. Analytics tools support these efforts by improving compliance monitoring, audit readiness, and risk management processes.

Cybersecurity is emerging as a top concern in today’s digital insurance landscape. With the rising frequency and sophistication of cyber threats, insurers are turning to analytics solutions to better assess cyber risks, safeguard sensitive customer data, and implement proactive protection measures. For example, in April 2024, Gore Street Energy Storage Fund began using ACCURE’s AI-powered analytics to manage operational risks and secure more favorable insurance terms for projects within its portfolio. This highlights how advanced analytics are increasingly being used not only to assess risk but also to negotiate improved coverage and optimize business outcomes.

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Detailed Segmentation:

Component Insights

The insurance analytics market is divided by component into tools and services, with services further segmented into professional and managed services. In 2024, the tools segment held the largest revenue share of 66.9%, which can be attributed to the growing demand for mobile-based insurance solutions, especially with rising smartphone usage.

Application Insights

The insurance analytics market is segmented by application into claim management, risk management, process optimization, customer management personalization, and others. In 2024, the risk management segment led the market and is projected to maintain its dominance, driven by the need for automated insights that enhance underwriters' decision-making.

Deployment Insights

The insurance analytics market is segmented by deployment into on-premise and cloud solutions, with the cloud solutions segment leading in 2024. The segment is projected to maintain its dominance over the forecast years. Cloud deployment enables seamless integration with third-party applications and enhances security of online insurance services. Its pay-as-you-go model also reduces initial infrastructure costs.

Enterprise Size Insights

The insurance analytics market is segmented by enterprise size into large enterprises and Small Medium Enterprises (SMEs). Large enterprises are increasingly adopting insurance analytics to enhance customer loyalty, reduce infrastructure costs, and comply with evolving regulations such as HIPAA, PCI-DSS, and federal standards.

End-use Insights

The insurance analytics industry is segmented by end use into insurance companies, government agencies, and third-party administrators, brokers, and consultancies. The insurance companies segment led the market in 2024 due to rising demand for insurance services and the need for advanced analytics in financial reporting. 

Regional Insights

North America insurance analytics market dominated in 2024 with a revenue share of 34.7% and is expected to maintain this lead. This growth is driven by the adoption of analytics tools, a strong presence of major companies, and a focus on customer-centric solutions across sectors such as government, insurance, and third-party administrators

Key Insurance Analytics Companies:

The following are the leading companies in the insurance analytics market. These companies collectively hold the largest market share and dictate industry trends.

• Hexaware Technologies Limited
• LexisNexis Risk Solutions
• Microsoft
• MicroStrategy Incorporated
• Open Text Corporation
• Oracle
• Pegasystems Inc.
• Sapiens International
• Tableau Software, LLC
• Verisk Analytics, Inc.

Recent Developments

• In October 2024, LexisNexis launched LexisNexis Life Smart Path, a new solution designed for U.S. life insurance companies. This tool provides insurers with valuable data and advanced analytics during the initial stages of life insurance applications and underwriting. By utilizing this solution, insurers can make quicker decisions and conduct more thorough risk assessments.
• In September 2024, Sapiens International Corporation partnered with Addresscloud to enhance insurers' geographic risk assessment capabilities. This collaboration will provide accurate geocoding and property data for better underwriting decisions. The integration of Addresscloud's services with Sapiens' software aims to improve risk assessment accuracy and streamline claims management. Overall, this partnership seeks to provide insurers with a competitive advantage.
• In March 2024, Verisk integrated Seek Now’s claims inspection technology into its property insurance solutions, streamlining damage assessments and eliminating the need for manual data transfer. This will accelerate claims resolution, improve outcomes, and reduce cycle times for customers of both companies.

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