According to a comprehensive research report by Market Research Future (MRFR), “AI in Insurance Market information by Technology, by Components, by Deployment and Region – forecast to 2027” market size to grow at a healthy compound annual growth rate.
Artificial intelligence is disrupting every stage of the insurance value chain. AI technologies like machine learning, deep learning, natural language processing (NLP), machine vision, and robotic automation have the ability to reimagine the entire insurance lifecycle, from customer acquisition to claims processing. The adoption of AI enables insurance companies to remain competitive in the industry, drive operational excellence, and boost growth.
Dominant Key Players on AI in Insurance Market Covered are:
- Microsoft Corporation (US)
- ZhongAn (China)
- Acko General Insurance (India)
- Amazon Web Services Inc. (US)
- IBM Corporation (US)
- Avaamo Inc (US)
- Cape Analytics LLC (US)
- Wipro Limited (India)
- Shift Technology (France)
- BIMA (UK)
- Quantemplate (US)
- Zurich Insurance Group (Switzerland)
- Lemonade (US)
- Trov (Japan)
- Slice (US)
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Market USP Exclusively Encompassed:
Machine learning and deep learning algorithms aid in the development of smart, automated applications like healthcare diagnosis, automated data centers, predictive maintenance, customer service, self-driving vehicles, and smart homes. The growing need to provide customized insurance services, as well as the need to simplify the operating process, are driving the growth of AI in the global insurance industry. When compared to humans, AI systems are capable of managing large volumes of customer and enterprise data as well as multiple tasks more efficiently and reliably, allowing insurance professionals to concentrate on more complex and high-value activities. With the aid of technologies such as NLP and computer vision, AI is becoming proficient at recognizing faces, images, and spoken language, providing an intuitive experience. Furthermore, the growing adoption of IoT technology is expected to drive market growth. The adoption of IoT is expected to increase the volume and speed of data generation, and in turn drive the need to automate the process of generating actionable insights.
However, a lack of technological expertise in complex AI algorithms is stifling market development. The industry is looking for opportunities in machine learning and deep learning algorithms. Risks associated with data leaks and cybersecurity attacks, on the other hand, are the market's main challenges.
The multiple use cases of AI in the insurance industry include interactive insurance chatbots, behavioral premium pricing, customized claims settlements, insurance analytics, fraud and risk management. The market is seeing an increase in the use of unmanned aerial vehicles (UAVs) and smart devices for intense surveillance. Blockchains and big data analytics are projected to have the greatest effect on AI in the insurance industry.
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Geographically, the global AI in the insurance industry has been segmented into Asia Pacific, North America, the Middle East and Africa, Europe, and South America.
Currently, North America dominates the global AI in insurance industry. The area is a pioneer in emerging technology and a center for many AI solution providers. The U.S. has the largest market share in the region, owing to a highly skilled workforce in enterprises and RD capabilities aimed at improving AI technologies to enhance the efficiency of the insurance process.
Europe is projected to have a significant increase in market share in the global AI in the insurance industry, trailing North America. The growing use of digital technologies to simplify business processes and improve customer service is propelling market growth in Europe.
During the forecast period, Asia Pacific is expected to be the fastest-growing region. Government policies to promote digitalization, as well as increased investments in emerging technology such as AI and IoT, are driving up demand for AI in the insurance industry.
The global AI in the insurance market in the Middle East and Africa and South America is expected to develop at a significant rate during the forecast period, owing to the increasing need to automate the insurance process and provide customized insurance services, which help companies retain a competitive edge in the market.
Segmentation of Market Covered in the Research:
The global AI in the insurance industry has been segmented on the basis of component, technology, deployment, application, and sector.
Based on component, the global AI in the insurance industry has been segmented into hardware, software, and services.
Based on technology, the global AI in the insurance industry has been segmented into natural language processing (NLP), machine learning and deep learning, machine vision, and robotic automation.
Based on deployment, the global AI in the insurance industry has been segmented into on-cloud and on-premise.
Based on application, the global AI in the insurance industry has been segmented into chatbots, risk management and compliance, personalized recommendation, claims processing, and others.
Based on sector, the global AI in the insurance industry has been categorized into health insurance, life insurance, auto insurance, title insurance, and others.
COVID-19 Impact on the Global AI in Insurance Market
COVID-19 is an unprecedented global public health emergency that has affected almost every industry, with long-term effects expected to affect industry growth over the projected period.