Insurance Fraud Detection Market Growth & Trends
The global insurance fraud detection market size is expected to reach USD 9.7 billion by 2025, registering a CAGR of 13.7% over the forecast period, according to a new report by Grand View Research, Inc. Detecting and preventing fraudulent activities is a global challenge for insurers. However, the emergence of advanced solutions such as the use of automated business rules, self-learning models, text mining, predictive analytics, image screening, network analysis, and device identification is expected to deliver actionable insights to improve claims processes. As a result, insurance organizations are adopting fraud detection solutions that not only recognize the genuine claims process but also reduce the number of false positives.
The prevention and detection of fraud capabilities are increasing with the growing awareness of perpetrators and sophisticated crimes. Global concerns about the ever-increasing cases of insurance frauds coupled with sophisticated organized crime, have signaled a need for coherent action by all insurance companies. As per a research conducted by the Federal Bureau of Investigation (FBI), the total estimated cost of insurance fraud in the U.S. is expected to be more than USD 40 billion per year. As a result, in the U.S., it has led to an increased premium of approximately USD 420 to 700 per year for the average earning family. Similarly, according to the Association of British Insurers in the U.K., insurer unearthed more than 113,000 fraudulent claims and 449,000 dishonest insurance applications, valued at USD 1.3 billion. Thus, to curb fraudulent claims coupled with the various stringent regulations set by the government, enterprises are expected to adopt these solutions in the near future. These solutions are expected to enable an enterprise to identify fraudulent activities with higher speed and accuracy, thereby improving the consumer experience by realizing fast payouts.
In the insurance sector, fraudulent activities are primarily categorized as criminal and cultural. In criminal type, professional perpetrators habitually try to identify a weak system to attack. While in cultural type, a genuine claimant is opportunistic by exaggerating a claim. With the help of data analytics, insurance companies can analyze and detect the possibility of fraudulent activities. The user can enter data, and claim applications are automatically given a score to indicate the likelihood that scam has occurred. Thus, the use of predictive modeling can potentially produce a quantified score that helps a company to understand the propensity of a scam. Monitoring the arrived score through the use of advanced solutions is expected to show more accurate and effective results than that of traditional fraud detection methods. However, relying solely on technology for suspecting the fraudulent activities to be flagged is expected to be a key challenge for the insurers. Thus, to overcome such challenges, analysts are required to initiate immediate action and follow appropriate measures to help the company reduce losses.
Request a sample copy of the Insurance Fraud Detection Market Research Report @ https://www.grandviewresearch.com/industry-analysis/insurance-fraud-detection-market/request/rs1
Insurance Fraud Detection Market Report Highlights
-
Solutions segment held the leading market share in 2018 and is expected to continue leading over the forecast period
-
Managed services segment is anticipated to exhibit the fastest CAGR of 15.6% over the forecast period
-
Large enterprise segment dominated the market with highest revenue share in 2018
-
The Asia Pacific region is anticipated to witness the fastest CAGR over the forecast period
Have Any Query? Ask Our Experts @ https://www.grandviewresearch.com/inquiry/6878/ibb
Insurance Fraud Detection Market Segmentation
Grand View Research has segmented the global insurance fraud detection market on the basis of component, solutions, services, deployment, organization, and region:
Insurance Fraud Detection Component Outlook (Revenue, USD Million, 2015 – 2025)
-
Solutions
-
Services
Insurance Fraud Detection Solutions Outlook (Revenue, USD Million, 2015 – 2025)
-
Fraud Analytics
-
Authentication
-
Governance, Risk, and Compliance (GRC)
Insurance Fraud Detection Services Outlook (Revenue, USD Million, 2015 – 2025)
-
Professional Services
-
Managed Services
Insurance Fraud Detection Deployment Outlook (Revenue, USD Million, 2015 – 2025)
-
Cloud
-
On-Premise
Insurance Fraud Detection Organization Outlook (Revenue, USD Million, 2015 – 2025)
-
Small & Medium Business (SMB)
-
Large Enterprise
Insurance Fraud Detection Regional Outlook (Revenue, USD Million, 2015 – 2025)
-
North America
-
U.S.
-
Canada
-
-
Europe
-
U.K.
-
Germany
-
-
Asia Pacific
-
China
-
India
-
Japan
-
-
Latin America
-
Brazil
-
Mexico
-
-
MEA
Browse Related Report:
Fraud Detection & Prevention Market : https://www.grandviewresearch.com/industry-analysis/fraud-detection-prevention-market
Security Market : https://www.grandviewresearch.com/industry-analysis/security-market
About Grand View Research
Grand View Research provides syndicated as well as customized research reports and consulting services on 46 industries across 25 major countries worldwide. This U.S.-based market research and consulting company is registered in California and headquartered in San Francisco. Comprising over 425 analysts and consultants, the company adds 1200+ market research reports to its extensive database each year. Supported by an interactive market intelligence platform, the team at Grand View Research guides Fortune 500 companies and prominent academic institutes in comprehending the global and regional business environment and carefully identifying future opportunities.
Media Contact
Company Name: Grand View Research, Inc.
Contact Person: Sherry James, Corporate Sales Specialist – U.S.A.
Email: Send Email
Phone: 1-415-349-0058, Toll Free: 1-888-202-9519
Address:201, Spear Street, 1100
City: San Francisco
State: California
Country: United States
Website: https://www.grandviewresearch.com/industry-analysis/insurance-fraud-detection-market