Global Insurance Fraud Detection Market expected to grow at a CAGR of 21.66% from 2020-2026
Published | 13 April 2020
Global Insurance Fraud Detection Market estimated to grow at a CAGR of 21.66% to reach USD 12 billion by 2026. The advent of big data analytics and cloud computing services and the rapid growth of mobile banking are key factors driving demand for fraud detection and prevention.
The cloud architecture helps companies to fulfill information protection compliance requirements for encryption, task isolation, and secure data access control. The development of new technology has produced sophisticated fraud techniques that help to detect fraud by using smarter approaches. Global concerns about the ever-increasing cases of insurance fraud, coupled with sophisticated organized crime, have signaled the need for all insurance companies to act consistently. Companies are expected to adopt these solutions in the near future to curb fraudulent claims coupled with the various strict regulations laid down by the Government. Such technologies are supposed to allow a company to detect higher speed and accuracy of fraudulent activities, thus improving consumer experience by making quick payouts.
The increasing fraud incidents and advanced solution for fraud detection will propel the market growth
The insurance companies have been facing several insurance claims such as fake bills, exaggeration of claims, etc. leading to an increase in fraud incidence further supplement the growth of the market for fraud detection & prevention. Advanced solutions such as the application of automated business rules, self-learning models, text mining, predictive analysis, image screening, network analysis, and device identification are expected to provide actionable insights to improve claims processes. Insurance companies can monitor and predict the risk of fraudulent activities with the help of data analytics. The user may enter data, and a score is automatically given to claim applications to indicate the likelihood that scam has occurred. Therefore, using predictive modeling can potentially produce a quantified score that helps a firm understand a scam's tendency. Monitoring the score arrived by using innovative technologies is expected to show more reliable and successful results than traditional methods for detecting fraud.
The fraud analytics segment is expected to capture the largest market share in the global Insurance Fraud Detections market.
Fraud analytics is expected to constitute the largest market share. It involves a collection of analytical techniques that analyze the systems and databases of companies to identify vulnerabilities where fraud may occur. Such systems track and analyze data from multiple data sources, identify anomalies and suspicious & irregular activity across all channels, and provide real-time control mechanisms to prevent fraudulent practices. Hence, leading to the growth of the segment. Most vendors offer conventional fraud analytics models based on rules, while some prefer the approaches based on Artificial Intelligence and Machine Learning. Fraud detection tools proactively detect fraud and also help to meet compliance requirements.
North America is expected to witness rapid growth in the Global Insurance Fraud Detection market
During the forecast period, North America is expected to hold a major share in the market for detecting insurance fraud. The criminals look forward to taking advantage of the people across the country. Since most people in the region have health insurance, there is a variety of free medical care or supplemental consultation deals. Growing trends, such as IoT, IoE and smartphone penetration, have increased the volume of online user data and transactions. Additionally, mobile users are often targeted by fraudsters, as mobile banking online has become a common method of making financial transactions. The rise in threats and vulnerabilities and compliances from the government has made North America the most lucrative industry for various categories of vendors.
Global Insurance Fraud Detection Market: Competitive Landscape
The major market players in the Insurance Fraud Detection market are FICO (US), IBM (US), BAE Systems (UK), SAS Institute (US), Experian (Ireland), LexisNexis (US), Iovation (US), FRISS (Netherlands), SAP (Germany), Fiserv (US), ACI Worldwide (US), Simility (US), Kount (US), Software AG (Germany), BRIDGEi2i Analytics Solutions (India), and Perceptiviti (India), PayPal Holdings, Inc., RELX PLC, TransUnion LLC, and other prominent players. These vendors have adopted various strategies to expand their offerings in the market.
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