The increasing penetration of cloud based AI solutions over on-premise solutions for various business functions is anticipated to drive the growth of artificial intelligence applications in the automotive insurance industry. The on-premise artificial intelligence solutions are sometime complex, expensive and difficult to build in-house by enterprises. Not every mid-size or to some extent even the large enterprise finds it feasible to invest in in-house development and deployment of artificial intelligence technology owing to the huge infrastructure and technical expertise requirements.
The advanced features and evolving architectures of today’s cloud platforms are propelling the adoption of cloud based solutions in every industry vertical including insurance. Low initial investment, sophisticated cloud & hosting models, advanced features, and on-demand variations are some of the major factors that are driving the adoption of cloud solutions in insurance companies. The investment is cloud solutions does not only help companies in scaling up the operations but also lead to enhanced cost and productivity control. In addition to these factors, the business requirements of each organization is different and hence, they require customized solutions and using cloud based solutions for these specific needs is considered as the best business model for most companies worldwide. All these factors are anticipated to drive the demand for cloud based artificial intelligence solutions in the automotive insurance market during the forecast period of 2019 to 2027.
The global auto industry is going through a shift with technological advancements happening in the electric vehicle and autonomous vehicle sector. With increasing safety features and driverless technology, it is anticipated that the auto insurance industry may shrink substantially in the coming years. The auto insurance industry contributes a large chunk to the global insurance industry and it is crucial for auto insurance companies to focus on product and service innovations in order to sustain profits during the forecast period of 2019 to 2027. There are few technology trends where AI can help insurance companies and brokers make profits by integrating technology in their present product and service portfolio. Some of these major trends include behavioral policy pricing, personalization of customer experience & coverage, and customized claim settlement. With increasing number of IoT (internet of Things) enabled devices with various among customers, the opportunity to offer personalized services is growing at a fast pace. Behavioral policy pricing make use of personal data collected by these IoT sensors in pricing platforms. This gives advantage to drivers who follow safety instructions as they have to pay less for auto insurance, this is also known as usage-based insurance. With the help of chatbots, artificial intelligence also offers a seamless buying experience to customers based on the data related to their geographic location, social media, online purchases and other factors. Customized coverage or on-demand insurance is another benefit through which customers get custom coverage for some specific events/items. With the help of virtual claim adjusters and online interfaces, artificial intelligence helps customers in settling the claims faster and efficiently. All these advantages of artificial intelligence also help in reducing the fraud incidents. Hence, with various features and upcoming applications of artificial intelligence in the auto insurance industry, the AI in auto insurance market is anticipated see tremendous growth during the forecast period of 2019 to 2027.
The AI in auto insurance market by offerings is segmented by usage based insurance, on-demand insurance, and peer-to-peer insurance. The AI stimulate savings for community of parties including brokers and policyholders and insurance carriers, plugging into existing transformations inside the insurance industry. Cuvva, Trov, and Metromile are some of the companies which are responsible to tackle complete insurance buying process.
The regional trends and factors influencing the AI in Auto Insurance Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses AI in Auto Insurance Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2018 | US$ 1.05 Billion |
| Market Size by 2027 | US$ 5.46 Billion |
| Global CAGR (2018 - 2027) | 20.5% |
| Historical Data | 2016-2017 |
| Forecast period | 2019-2027 |
| Segments Covered |
By Offerings
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The AI in Auto Insurance Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the AI in Auto Insurance Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The global AI in auto insurance market has been segmented on the basis of application into claims assessment, policy pricing, and chatbots. High penetration of internet capabilities has resulted into the development of advanced technologies to save both time and cost of the parties.
AI inside the Insurance industry has overtaken the traditional claims management process by making it quicker and better with minimal errors. The new claims management process supports insurers to achieve far better claims management by optimizing technology in the best manner. The innovative claims assessment process facilitates real-time question & answer service for first notice, pre-assess claims while automating damage evaluation process, predicting the patterns of claim volume, automating claims fraud detection with the help of rich data analytics, and augmenting loss analysis. Adoption of AI and machine learning in the claim management process has the potential to benefit both insurer and insurance company to significant save processing cost and time with a remarkable increase in service quality.
The List of Companies