Kathmandu. The insurance fraud detection market is expected to exceed $28 billion in the next six years.
Allied Market Research has made this assumption. According to the research report, the global insurance fraud detection market in 2021 is worth 43.3 billion. Now by 2031, it is expected to increase to $ 28.1 billion. Which is growing at a compounded annual rate of 24.2%.
Problem solving accounted for nearly three-quarters of the market in 2021, thanks to false claims, an increase in fraud, and the integration of detection tools with Artificial Intelligence (AI) and Internet of Things technology. The service segment, driven by the demand for consultancy, maintenance and training services to manage fraud risk, is expected to grow at the fastest pace with an estimated compound annual growth rate of 27.8 percent.
The payment and billing fraud detection sector accounted for nearly 40 percent of the market share in 2021. Which was supported by insurance companies and financial institutions by adopting a rules-based system.
As insurance companies implement AI-driven claim processing, the rate of detection of claim fraud is expected to increase at the highest rate of 26.8 percent annually.
The Asia-Pacific region accounted for more than a third of global revenues in 2021. It is expected to retain its leadership until 2031. Which is driven by investments in digitalization, big data and hybrid agency models.
North America will record the fastest regional growth at 26.6 percent annually driven by growing demand for disability insurance, analytical tools and claim automation.
