Insurance Analytics Market Size to Hit USD 72.39 Billion by 2035 | Research by SNS Insider

The United States Insurance Analytics Market was valued at around USD 4.34 billion in 2025 and expected to be around USD 15.90 billion in 2035, registering a compound annual growth rate of 14.81%. The high growth rate in this industry is fueled by the fast adoption of cloud computing, big data and artificial intelligence solutions, coupled with an intense insurance industry competition and an insurtech ecosystem in place. In turn, the Europe Insurance Analytics Market is worth USD 4.86 billion in 2025 and expected to rise to USD 18.92 billion in 2035 at a compounded annual growth rate of 14.55%.

Austin, May 30, 2026 (GLOBE NEWSWIRE) -- Insurance Analytics Market Size & Growth Insights:

According to the SNS Insider, “The Insurance Analytics Market Size was valued at USD 17.60 billion in 2025 and is expected to reach USD 72.39 billion by 2035, growing at a CAGR of 15.19% over 2026–2035.”

Escalating Insurance Fraud Burden and Underwriting Loss Ratio Pressure to Augment Market Expansion Globally

The key structural drivers of growth within the insurance analytics market are the economically tangible benefits resulting from fraud detection, reduced underwriting loss ratios, lower costs associated with claims processing, and improved customer retention. It also provides commercially attractive business rationales for the purchase of an analytics solution without the need for any consideration related to technological trends, together with the growing availability of alternative data sources such as telematics and IoT sensors, satellite imaging, and behavior-based digital data, which offer the capability of performing analytics to analyze risk on an individual level that traditional actuarial modeling cannot achieve.

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Leading Market Players with their Product Listed in this Report are:

• IBM Corporation
• Oracle Corporation
• SAP SE
• SAS Institute Inc.
• Verisk Analytics Inc.
• LexisNexis Risk Solutions
• Majesco
• Guidewire Software AG Inc.
• Duck Creek Technologies
• Pegasystems Inc .
• Sapiens International Corporation
• EIS Group
• Applied Systems
• OneShield Software AG
• Arity ( Allstate )
• Tractable Ltd.
• Shift Technology
• FRISS
• Quantemplate
• Bdeo

Insurance Analytics Market Report Scope:

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Key Segmentation Analysis:

By Component

Software AG dominated the Insurance Analytics Market with approximately 64.18% share in 2025 due to the increasing adoption of AI-powered analytics platforms for underwriting optimization, fraud detection, claims management, and customer risk assessment across global insurance operations. Services are the fastest-growing segment at a CAGR of approximately 12.22% through 2035, driven by the growing need for consulting, integration, customization, and managed analytics support as insurers modernize legacy systems and implement advanced data-driven strategies.

By Deployment

Cloud deployment led the Insurance Analytics Market with approximately 65.18% share in 2025 owing to its scalability, lower infrastructure costs, and ability to support real-time analytics across distributed insurance ecosystems. On-premise is the fastest-growing segment at a CAGR of approximately 16.04% through 2035, supported by increasing concerns regarding data privacy, regulatory compliance, cybersecurity protection, and the demand for greater control over sensitive customer and financial information.

By Enterprise Type

Large enterprises dominated the market with approximately 68.40% share in 2025 due to their extensive customer databases, high claims volumes, and significant investments in advanced predictive analytics and AI-driven insurance platforms. SMEs are the fastest-growing segment at a CAGR of approximately 15.80% through 2035, fueled by the increasing availability of affordable cloud-based analytics solutions and rising awareness regarding data-driven customer engagement and operational optimization.

By End-User

Insurance firms accounted for approximately 72.34% share of the Insurance Analytics Market in 2025 due to rising adoption of analytics solutions for fraud prevention, risk modeling, claims optimization, and personalized policy development. Government agencies are the fastest-growing segment at a CAGR of approximately 16.04% through 2035, driven by increasing investments in public insurance program analytics, healthcare claims monitoring, disaster risk analysis, and digital governance initiatives.

Regional Analysis:

The region of North America took the lead position in the worldwide insurance analytics market in 2025 because the US had a leading presence in North America in terms of revenue share due to its status as the largest insurance market globally in terms of premiums and being the most active ecosystem for insurtechs.

The Asia-Pacific region is the fastest-growing market in insurance analytics due to the fast growth of insurance penetration in emerging economies like China, India, South Korea, Japan, and Southeast Asian markets, where an increasing middle-class population is buying insurance for the very first time, along with the availability of huge digital data through smart-phone adoption.

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Recent Developments:

• 2025: Verisk Analytics expanded its insurance analytics platform with new AI-powered aerial imagery analysis capabilities that automatically assess property condition, identify roof damage, and quantify exposure for catastrophe underwriting from high-resolution satellite and drone imagery, reducing the manual inspection requirements for property insurance risk assessment at renewal and post-catastrophe claims triage.
• 2025: SAS Institute launched its SAS Viya for Insurance platform update incorporating generative AI capabilities for automated claims documentation analysis, regulatory filing preparation, and policy document interrogation that reduce the skilled labor hours required for complex insurance administrative functions by 30 to 50% in early adopter carrier deployments.

Exclusive Sections of the Insurance Analytics Market Report (The USPs):

• PRICING ANALYSIS & DEPLOYMENT COST METRICS – helps you understand pricing trends across cloud-based and on-premises insurance analytics platforms, deployment cost structures, subscription models, and long-term pricing forecasts across the industry.
• PRICE BENCHMARKING & COMPETITIVE PRICING METRICS – helps you evaluate pricing strategies and benchmarking analysis of key insurance analytics providers based on platform capabilities, AI integration, scalability, and service offerings.
• REGULATORY COMPLIANCE & DATA PRIVACY METRICS – helps you analyze regional insurance compliance frameworks, evolving data privacy regulations, and regulatory outlooks impacting AI-driven insurance analytics adoption globally.
• AI & MACHINE LEARNING ADOPTION METRICS – helps you uncover trends in AI-powered underwriting, claims management, customer risk assessment, and machine learning integration improving operational efficiency and decision-making accuracy.
• CLOUD ANALYTICS & DIGITAL TRANSFORMATION METRICS – helps you assess penetration of cloud-based insurance analytics solutions, infrastructure modernization trends, scalability improvements, and digital transformation initiatives across insurers.
• PREDICTIVE ANALYTICS & FRAUD DETECTION METRICS – helps you identify opportunities in predictive risk modeling, fraud detection systems, customer behavior analytics, and real-time data intelligence enhancing insurance performance and loss prevention strategies.

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