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.
Browse full research report on Insurance
Fraud Detection Market:
https://www.grandviewresearch.com/industry-analysis/insurance-fraud-detection-market
Further key findings from the report suggest:
- 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
Browse request sample of this report by
Grand View Research: https://www.grandviewresearch.com/industry-analysis/insurance-fraud-detection-market/request/rs1
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
About Grand View Research
Grand View Research, Inc. is a U.S. based market
research and consulting company, registered in the State of California and
headquartered in San Francisco. The company provides syndicated research
reports, customized research reports, and consulting services. To help clients
make informed business decisions, we offer market intelligence studies ensuring
relevant and fact-based research across a range of industries, from technology
to chemicals, materials and healthcare.
For more info visit @ https://www.grandviewresearch.com
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