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.
Full Research Report On Insurance Fraud Detection Market Visit Here:
https://www.grandviewresearch.com/industry-analysis/insurance-fraud-detection-market
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
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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
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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