ID: MRFR/ICT/6993-HCR | February 2021 | Region: Global | 111 pages
Artificial Intelligence is disrupting every step across the insurance value chain. AI technologies such as machine learning and deep learning, natural language processing (NLP), machine vision, and robotic automation have the potential to reimagine the entire insurance lifecycle from customer acquisition to claims processing. Adoption of AI helps insurance companies to remain competitive in the market, drive operational excellence, and boost growth.
Machine learning and deep learning algorithms help to drive smart, automated applications such as healthcare diagnosis, predictive maintenance, customer service, automated data centers, self-driving cars, and smart homes. The increasing need to offer personalized insurance services and the growing need to automate the operational process are the factors driving the growth of AI in insurance market across the globe. The AI technologies are capable of handling huge volumes of customer and enterprise data and various tasks more quickly and accurately as compared to humans, which allows the insurance professionals to focus more on complex and high-value activities. AI is becoming proficient at recognizing faces or images and spoken language with the help of technologies such as NLP and computer vision offering an intuitive experience. Furthermore, the rising adoption of IoT technology is also expected to propel the market growth. Increasing volume and speed of data generation with the adoption of IoT is expected to drive the need to automate the process of generating actionable insights using advanced machine learning and deep learning algorithms.
However, the lack of technical expertise related to complex AI algorithms is hampering the market growth. The market seeks opportunities from advancements in machine learning and deep learning algorithms. Whereas, risks related to data leaks and cybersecurity breaches are the major challenges faced by the market.
Interactive insurance chatbots, behavioral premium pricing, insurance analytics, customized claims settlements, fraud and risk management are the various use cases of AI in the insurance market. Adoption of UAVs and smart devices for extreme surveillance are the prevalent trends in the market. AI in the insurance market is expected to be mainly impacted by technologies such as blockchains and big data analytics.
The Prominent Players active in the global market of AI in insurance are Microsoft Corporation (US), Amazon Web Services Inc. (US), IBM Corporation (US), Avaamo Inc (US), Cape Analytics LLC (US), Wipro Limited (India), ZhongAn (China), Acko General Insurance (India), Shift Technology (France), BIMA (UK), Quantemplate (US), Zurich Insurance Group (Switzerland), Lemonade (US), Trov (Japan), and Slice (US).
Insurify (US), Insurmi (US), PolicyPal (Singapore), Planck Re (US), and Tractable (UK) are some of the other players in the market.
The global AI in the insurance market has been segmented on the basis of component, technology, deployment, application, sector, and region.
By component, the market has been segmented into hardware, software, and services.
By technology, the market has been segmented into machine learning and deep learning, natural language processing (NLP), machine vision, and robotic automation.
By deployment, the market has been segmented into on-cloud and on-premise.
By application, the market has been segmented into claims processing, risk management and compliance, personalized recommendation, chatbots, and others.
By sector, the market has been categorized into life insurance, health insurance, title insurance, auto insurance, and others.
By region, the market has been segmented into North America, Europe, Asia-Pacific, the Middle East and Africa, and South America.
Market Research Future (MRFR) has covered the following countries in the regional analysis of AI in the insurance market: the US, Canada, and Mexico in North America. Germany, the UK, France, Spain, Norway, Benelux, and Italy in Europe. China, Japan, India, South Korea, Australia, Malaysia, Indonesia, and the Philippines in Asia-Pacific. Saudi Arabia, Israel, Turkey, and South Africa in the Middle East & Africa; and Brazil, Peru, Chile, and Argentina in South America.
North America currently dominates the global AI in the insurance market. The region is an early adopter of new technologies and hub to several AI solution providers. The US, among all the countries in the region, accounts for the largest market share owing to highly skilled workforce in enterprises and research and development capabilities, aimed at developing AI technologies for enhancing the quality of the insurance process. Europe follows North America in terms of market share; it is expected to have a considerable growth in the global AI in the insurance market. Increasing adoption of digital technologies to automate business processes and enhance customer experience is driving the market growth in Europe.
Asia-Pacific is projected to be the fastest-growing region during the forecast period. Government initiatives supporting digitalization and growing investments on advanced technologies such as AI and IoT are increasing the demand for AI across the insurance industry. The global AI in insurance market in the Middle East & Africa and South America is also expected to grow at a considerable rate during the forecast period due to the rising need to automate the insurance process and to offer personalized insurance services which help the companies to maintain a competitive advantage in the market.
Frequently Asked Questions (FAQ) :
Rising demand for personalized insurance services to spur the growth of the market in the coming years.
The different technology based segments of the market are machine learning and deep learning, machine vision, natural language processing (NLP), and robotic automation.
The different regional segments profiled are North America, Asia-Pacific, Europe, the Middle East and Africa, and South America.
Based on component, the segments covered are - software, hardware, and services.
The segments of the market, based on sector, are insurance, title insurance, auto insurance, health insurance, and others.