Insurance Fraud Detection Market Trends, Size and Growth 2031

 

The insurance fraud detection market size is anticipated to expand at a CAGR of 26.4% from 2023 to 2031. The need to successfully manage large volumes of data, improve operational efficiency, and enhance the client experience is driving the market's growth.

Insurance Fraud Detection Market Analysis

The market is fueled by several key factors, including the escalating adoption of sophisticated analytical methodologies, a noticeable uptick in insurance fraud occurrences, notable enhancements in cybersecurity infrastructure, greater utilization of artificial intelligence (AI) and Internet of Things (IoT) empowered fraud detection solutions, and a rising prevalence of erroneous claims. Moreover, the increasing complexity and diversification of fraudulent activities within the insurance industry are further contributing to the market's growth trajectory.

Insurance Fraud Detection Market Overview

• Insurance fraud detection encompasses the strategies and measures employed by insurance providers to uncover and mitigate deceptive behaviors carried out by policyholders or external entities. This encompasses the utilization of sophisticated analytical methods, predictive analytics, and technological tools to anticipate and preclude forthcoming fraudulent occurrences.
• The fundamental objective is to protect against diverse forms of fraudulent activities that contribute to financial burdens, including unregistered drivers, underreported mileage, traffic violations/accidents, fictitious garaging to reduce premiums, and misrepresentation of employment details by employers to obtain lower premiums.

Insurance Fraud Detection Market Drivers and Opportunities

Increasing Frequency of False Claims to Drive the Insurance Fraud Detection Market Growth

• The escalating occurrence of deceptive claims, encompassing fabricated medical documentation, staged incidents, and other illicit practices, has spurred the demand for fraud detection offerings within the insurance sector.
• Moreover, the integration of advanced analytics and technology is catalyzing the expansion of the insurance fraud detection market. This surge is attributed to the imperative need to counteract the rising prevalence of fraudulent activities that impact the integrity and financial stability of insurance operations.

Insurance Fraud Detection Market Report Segmentation Analysis

• Based on component, the market is segmented into solution and services. The solution segment is expected to hold a substantial insurance fraud detection market share in 2023.
• The solutions component comprises various technological tools and platforms designed to identify, analyze, and prevent fraudulent activities. These may include fraud analytics, authentication mechanisms, and governance, risk, and compliance (GRC) solutions. The utilization of advanced analytics and technology within these solutions is pivotal in enhancing the detection and mitigation of fraudulent practices, thereby safeguarding the integrity of insurance operations.

Insurance Fraud Detection Market Share Analysis by Geography

The scope of the Insurance Fraud Detection Market report is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is experiencing rapid growth and is anticipated to hold a significant insurance fraud detection market share. The insurance fraud detection market in North America is primarily led by the US, where the increasing instances of insurance fraud are driving market expansion. The rise in fraudulent activities has stimulated a heightened need for fraud detection products and solutions within the insurance sector. Integration of real-time data analytics and predictive modeling to identify and prevent illegal activities more effectively is a key trend in the North America insurance fraud detection market.

Insurance Fraud Detection Market Report Scope

The "Insurance Fraud Detection Market Analysis" was carried out based on network type, application, end user, and geography. In terms of component, the market is segmented into solution and services. Based on deployment mode, the market is segmented into on-premises and cloud. Based on enterprise size, the market is segmented into large enterprises and SMEs. Based on applications, the market is segmented into payment fraud and billing fraud, identity theft, claims fraud, and money laundering. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

Insurance Fraud Detection Market News and Recent Developments

Companies adopt inorganic and organic strategies such as mergers and acquisitions in the market. The insurance fraud detection market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. A few recent key market developments are listed below:

• In March 2024, Verisk (Nasdaq: VRSK), a leading global data analytics and technology provider, today announced two new collaborations with insurance technology companies designed to bolster fraud detection and analysis in the insurance claims process. FRISS and Globlue Technologies will join the Verisk Claims Solutions ecosystem by integrating with Verisk's ClaimSearch® platform, which includes the world's largest property and casualty (P&C) claims database containing over 1.7 billion claims from throughout the U.S.

[Source: Verisk Analytics, Inc., Company Website]

Insurance Fraud Detection Market Report Coverage & Deliverables

The market report on “Insurance Fraud Detection Market Size and Forecast (2021–2031)”, provides a detailed analysis of the market covering below areas-

• Market size & forecast at global, regional, and country- level for all the key market segments covered under the scope.
• Market dynamics such as drivers, restraints, and key opportunities.
• Key future trends.
• Detailed PEST & SWOT analysis
• Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
• Industry landscape and competition analysis covering market concentration, heat map analysis, key players, recent developments.
• Detailed company profiles.

REGIONAL FRAMEWORK

Insurance Fraud Detection Market Report Analysis

MARKET PLAYERS

Insurance Fraud Detection Market Report Scope