The global insurance analytics market is expected to grow to almost US$12 billion in five years, with Asia-Pacific leading the way, according to a study.
Market research firm MarketsandMarkets has released a report showing that the insurance analytics sector, valued at US$6.63 billion in 2018, is expected to reach US$11.96 billion in 2023, with a compound annual growth rate (CAGR) of 12.5%.
This is due to insurers’ fast-increasing adoption of data-driven decision-making process and advanced analytics techniques. Multi-line carriers which supply both retail and commercial insurance run many applications to handle underwriting, claims, and CRM, the study said.
However, the study also cautioned that lack of integration with legacy systems and varying regulations across territories can serve as hindrances to growth.
The Asia-Pacific region is predicted to grow the fastest due to its rapid adoption of insurance technology. Strong economic growth, globalisation, digitalisation, and proliferation of cloud-based services are the main drivers of growth in the region, the report said.
Meanwhile, North America, followed by Europe, will remain as the largest revenue-generating region for insurance analytics vendors over the next five years, the study revealed. This is mostly attributed to highly developed economies, such as Canada and US, and their focus on innovations in R&D and technology across industry verticals.
The study gathered data from in-depth interviews C-suite officers, marketing directors, other innovation and technology directors, and executives from various key organizations operating in the insurance analytics marketplace.
