$12+ Billion Worldwide Insurance Fraud Detection Industry to 2031 - Increase in Cyberattacks is Expected to Propel Growth - ResearchAndMarkets.com
The "Insurance Fraud Detection Global Market Report 2022" report has been added to ResearchAndMarkets.com's offering.
This report provides strategists, marketers and senior management with the critical information they need to assess the global insurance fraud detection market.
The global insurance fraud detection market is expected to grow from $4.24 billion in 2021 to $5.19 billion in 2022 at a compound annual growth rate (CAGR) of 22.6%. The insurance fraud detection market is expected to grow to $12.01 billion in 2026 at a CAGR of 23.3%.
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Th insurance fraud detection market consists of sales of insurance fraud detection services by entities (organizations, sole traders, and partnerships) that help in the identification and prevention of fraudulent activities related to money or insurance.
Numerous software-based solutions are used to analyze historic patterns and incidents to predict future occurrences. Insurance fraud detection is generally used by organizations for fraud analytics, authentication, governance, risk, and compliance to safeguard databases and identify vulnerabilities.
The main deployment types of insurance fraud detection are on-premises and cloud. On-premises insurance fraud detection refers to software that is implemented and activated on computers on the premises of the individual or using the software, instead of at a distant facility such as a server farm or cloud.
The various components of insurance fraud detection include solutions, and services that are used by small and medium-sized enterprises (SMEs), and large enterprises. The applications of insurance fraud detection are claims fraud, identity theft, payment and billing fraud, and money laundering that are used across various end-users such as insurance companies, insurance intermediaries, agents and brokers, and other end-users.
North America was the largest region in the insurance fraud detection market in 2021. The Asia Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the insurance fraud detection market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
The increase in cyberattacks is expected to propel the growth of the insurance fraud detection market. A cyberattack is a dangerous and intentional attempt by an individual or organization to gain access to another person's or organization's data. Insurance companies are an excellent target for cyber-attacks since they have access to a large amount of personal policyholder data. Compared to other industries, which hold mainly sensitive financial data, insurers typically also collect a large amount of protected personal sensitive information.
For instance, the FBI's Internet Crime Complaint Centre (IC3), a website that provides users with a standardized process and interfaces for reporting suspected cybercrime or other illicit online activities in the US, saw a 69% increase in the number of cybercrimes reported received in 2020 compared to 2019 in the US. On average, in 2020, the FBI received 2,000 cybercrime reports per day. Therefore, an increase in cyberattacks is driving the growth of the insurance fraud detection market.
Technological advancements are a key trend gaining popularity in the insurance fraud detection market. Many companies are offering new solutions with upgraded technologies to improve the monitoring and identification of insurance fraud claims for their customers.
For instance, in December 2021, Crawford & Company, a US-based independent claims management company, launched the Crawford Intelligent Fraud Detection solution. This innovative solution combines human expertise with forensic analysis, leveraging DXC Luxoft's Financial Crimes Intelligence platform in collaboration with IBM to improve the detection and management of fraudulent claims. Crawford's significant knowledge and skills are leveraged in this solution, which uses AI to assist customers in detecting and managing insurance fraud.
In February 2022, Charles Taylor InsureTech, a UK-based software provider for the insurance industry acquired the majority share of Fraud Keeper for an undisclosed amount. The acquisition is expected to enable Fraud Keeper to bring its proven technology to new markets and client situations globally.
Additionally, the deal complements Charles Taylor's counter-fraud strategy, its specialist investigation services investigations division. Fraud Keeper is a UK-based company that allows detecting, preventing, mitigating, and managing fraudulent transactions in the insurance sector.
The countries covered in the insurance fraud detection market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.
For more information about this report visit https://www.researchandmarkets.com/r/s7pa67
View source version on businesswire.com: https://www.businesswire.com/news/home/20230106005209/en/