The global insurance industry, valued at $12.7 billion in 2023, is anticipated to expand significantly, achieving a market size of $44.8 billion by 2032, according to Fortune Business Insights. This growth is forecasted to occur at a compound annual growth rate (CAGR) of 15.1% from 2024 through 2032.
In response to increasing competition, insurance firms are increasingly adopting advanced analytical solutions to manage risks, handle disasters, and comply with regulations. The COVID-19 pandemic has further heightened the need for insurance analytics, with insurers leveraging data-driven insights and predictive models to address the pandemic’s unique challenges and drive innovation.
The Asia Pacific region is emerging as the fastest-growing market for insurance analytics, fueled by supportive government policies, robust economic development, rapid digitalization, and widespread use of cloud technologies. Europe is also witnessing growth, benefiting from technological progress and analytics to streamline regulatory compliance and reduce claim processing costs.
Conversely, growth in South America and the Middle East & Africa is expected to be slower due to the nascent stage of analytics adoption. North America remains the largest market, where insurers utilize sophisticated tools for risk assessment and policyholder protection, underpinned by significant technological investments.
