Insurance Analytics Market Size To Reach $47.97 Billion By 2033

January 2026 | Report Format: Electronic (PDF)

Insurance Analytics Market Growth & Trends

The global insurance analytics market size is estimated to reach USD 47.97 billion by 2033, registering a CAGR of 15.0% from 2026 to 2033, according to a new report by Grand View Research, Inc. Rising use of big data and artificial intelligence (AI) by insurance organizations to automate decision-making process and customer targeting is anticipated to propel the market growth. Furthermore, increasing usage of smartphones and growing demand for digitalization across organizations to streamline their operations is expected to propel the demand for insurance analytics in the market.

Emergence of internet and social media along with increased affordability of storage systems has led to assimilation and generation of the large amount of unstructured data. Insurance companies today, are watching out for intends to effectively use the available information for better decision-making. The analytics solution helps the insurance organizations to predict the expected cost of insurance related with the coverage, enhance risk assessment process, and allow organization to prevent and detect fraudulent activities.

Rising adoption of machine learning and AI in developing insurance analytics tools is gaining popularity across the globe as it offers security control and real-time intelligence with enhanced user experience. Furthermore, increasing adoption of IoT insurance as it increases customer satisfaction, mitigate risks, and lower costs is expected to drive the market growth. Insurance organizations focus on prioritizing technology investments to analyze and gain new insights from customer data, which allow organizations to offer better services to their clients.

Vendors focus on expanding their capabilities in insurance offerings through merger & acquisitions and new product development. For instance, in January 2018, Sapiens International acquired KnowledgePrice, a provider of digital consulting services to insurers. The acquisition helped the former company to expand its capabilities in digital customer services for insurers.

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Insurance Analytics Market Report Highlights

On the basis of components, the tools segment held the largest revenue share of 66.7% in 2025, attributed to the growing demand for mobile-based insurance solutions, especially with rising smartphone usage.
On the basis of application, the customer management & personalization segment is anticipated to exhibit the fastest CAGR over the forecast period.
On the basis of deployment, cloud solutions segment held the largest market share in 2025, and is projected to maintain its dominance over the forecast years.
On the basis of enterprise size, the small and medium enterprises (SMEs) segment is anticipated to grow at the highest CAGR during the forecast period.
On the basis of end-use, the third-party administrators, brokers, and consultancisegment is anticipated to grow at the fastest CAGR over the forecast period.
The North America insurance analytics market dominated in 2025 with a revenue share of 34.5%, driven by the adoption of analytics tools, a strong presence of major companies, and a focus on customer-centric solutions across sectors such as government, insurance, and third-party administrators.

Insurance Analytics Market Segmentation

Grand View Research has segmented the global insurance analytics market based on component, application, deployment, enterprise size, end-use, and region:

Insurance Analytics Component Outlook (Revenue, USD Million, 2021 - 2033)