The global insurance analytics market size was valued at USD 13.84 billion in 2024 and is projected to reach USD 31.33 billion by 2030, growing at a CAGR of 14.7% from 2025 to 2030.  The expansion of the market is primarily driven by the increasing use of advanced analytics and data-driven decision-making across the insurance industry. Insurers are leveraging analytics tools to optimize processes, improve risk assessment, and enhance overall operational efficiency.

The adoption of insurance analytics tools and services by small- and medium-sized enterprises (SMEs) is also contributing to market growth, as these organizations increasingly recognize the value of data-driven insights in improving business performance. In addition, IoT-enabled insurance solutions are gaining traction, allowing insurers to offer innovative services, engage with customers more effectively, and develop personalized insurance plans, which further fuels market expansion.

A key factor driving the insurance analytics market is the rising need for accurate risk management. Insurers are increasingly using analytics to refine underwriting processes, predict potential losses, and mitigate financial risks. The integration of artificial intelligence (AI) and machine learning (ML) is enabling predictive insights that automate critical tasks such as claims processing and fraud detection, leading to higher operational efficiency and faster decision-making.

Moreover, there is a growing demand for personalized, data-driven customer experiences, which allow insurers to tailor offerings, streamline customer interactions, and enhance satisfaction. Analytics solutions also empower distributors and agents with tools to identify new business opportunities, manage existing customers more effectively, and optimize resource allocation. Additionally, these solutions help reduce customer handling costs, time, and fraud instances, reinforcing the value proposition of analytics and driving further adoption across the insurance sector.

Key Market Trends Insights:

• In 2024, the North America insurance analytics market held a dominant position, capturing a revenue share of 34.7%. The region’s leadership is primarily attributed to the presence of a highly developed insurance industry, advanced technological infrastructure, and the widespread adoption of analytics solutions among insurers seeking to optimize operations and enhance customer experiences. Within North America, the U.S. emerged as the key contributor, leading the regional market due to its robust insurance sector, high technology adoption, and continuous investment in digital transformation initiatives.

• When analyzed by component, the tools segment accounted for the largest revenue share of 66.9% in 2024. This dominance is driven by the extensive use of analytics tools for tasks such as risk assessment, predictive modeling, claims management, and fraud detection, which enable insurers to make faster and more accurate data-driven decisions.

• By application, the risk management segment led the market in 2024 and is expected to maintain its dominance throughout the forecast period. The growing need for precise risk evaluation, accurate underwriting, and the mitigation of potential losses continues to drive demand for analytics solutions in risk management.

• In terms of deployment, the on-premise segment is anticipated to experience a significant CAGR over the forecast period. This growth is supported by organizations seeking greater control over their data, enhanced security, and customization capabilities, which are often associated with on-premise deployment of analytics platforms.

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Market Size Forecast:

• 2024 Market Size: USD 13.84 Billion

• 2030 Projected Market Size: USD 31.33 Billion

• CAGR (2025-2030): 14.7%

• North America: Largest market in 2024

• Asia Pacific: Fastest growing market

Key Companies Market Share Insights:

Some of the key companies in the insurance analytics industry include Hexaware Technologies Limited, LexisNexis Risk Solutions, Microsoft, MicroStrategy Incorporated, Open Text Corporation, and Oracle. These organizations are actively focusing on expanding their customer base and strengthening their competitive positions within the market. To achieve these objectives, major players are implementing a variety of strategic initiatives, including mergers and acquisitions, as well as establishing partnerships with other leading companies. By leveraging these strategies, they aim to enhance their ability to deliver data-driven insights, improve operational efficiency, and drive innovation across the insurance sector.

Oracle provides cloud-based data management and AI analytics solutions specifically tailored for the insurance industry. Oracle’s AI-powered platforms support insurers in making more informed decisions by enhancing capabilities in risk assessment, fraud detection, claims management, and customer segmentation. With advanced tools for analyzing large volumes of data, Oracle enables insurance organizations to deliver more personalized services for policyholders, optimize resource utilization, and streamline operational processes.

MicroStrategy offers a business intelligence platform powered by AI and machine learning to assist insurers in making effective data-driven decisions. Their solutions allow insurers to analyze vast amounts of data in real time, improving key processes such as claims management, underwriting, and customer engagement. By uncovering actionable insights, MicroStrategy’s advanced analytics help insurance organizations drive growth, operational efficiency, and strategic decision-making, positioning them to respond proactively to market demands.

Key Players

• Hexaware Technologies Limited

• LexisNexis Risk Solutions

• Microsoft

• MicroStrategy Incorporated

• Open Text Corporation

• Oracle

• Pegasystems Inc.

• Sapiens International

• Tableau Software, LLC

• Verisk Analytics, Inc.

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Conclusion:

The global insurance analytics market is experiencing significant growth, driven by the increasing adoption of advanced analytics and data-driven decision-making within the insurance industry. This growth is further propelled by the rising demand for accurate risk management, the integration of AI and machine learning technologies, and the need for personalized customer experiences. North America currently holds a dominant position in the market, with the United States leading in both market share and growth rate. The tools segment remains the largest revenue contributor, while the service segment is witnessing the fastest growth.