Global insurance fraud detection market to grow $8 billion by 2024: Report

The global insurance fraud detection market size is expected to grow from USD 2.5 billion in 2019 to USD 7.9 billion by 2024, at a CAGR of 25.8% from 2019 to 2024, according to a report from ResearchAndMarkets.com.

Various factors, such as exponential rise in the sophistication level of cyber-attacks and huge monetary losses due to these attacks in the insurance sector, are expected to drive the market. However, lack of awareness among organizations about the importance of fraud detection solutions and improper implementation coupled with the lack of integration of fraud detection solutions across organization networks may restrain the market growth.

Fraud detection vendors help insurance organizations to tackle the security challenges and threats they pose due to the increased adoption of digital technologies such as IoT and BYOD in their organizations to enhance the customer experience. The solutions are classified into fraud analytics, authentication, and governance, risk, & compliance (GRC) solutions.

The cloud deployment type is set to grow at a higher CAGR during the forecast period. The deployment of cloud-based insurance fraud detection solutions is done over the internet, where software, infrastructure, platforms, devices, and other resources are provided as services on a pay-per-use basis by consumers.

The APAC market is expected to grow at the highest CAGR during the forecast period, owing to the rise in the threat of frauds at an alarming rate in the insurance sector in this region, thus driving an increase in spending on insurance fraud detection solutions.