Insurance fraud detection market to hit $28.1b by 2031

Claims fraud detection is forecast to grow at the highest rate of 26.8%.

The global insurance fraud detection market, valued at $3.3b in 2021, is projected to reach $28.1b by 2031, growing at a compound annual rate of 24.2%, according to Allied Market Research.

The solutions segment accounted for nearly three-fourths of market share in 2021, driven by a rise in false claims, fake records, and integration of detection tools with artificial intelligence and internet of things technology. 

The services segment is expected to grow at the fastest pace, with a projected CAGR of 27.8%, supported by demand for consulting, maintenance, and training services to manage fraud risk.

Payment and billing fraud detection held the largest share by application in 2021 at about 40% of the market, aided by the adoption of rule-based systems by insurers and financial institutions. 

Claims fraud detection is forecast to grow at the highest rate of 26.8% annually, as insurers implement AI-driven claims processing.

Asia-Pacific held more than one-third of global revenue in 2021 and is expected to maintain its lead through 2031, supported by investment in digitalisation, big data, and hybrid agency models. 

North America is set to record the fastest regional growth at 26.6% annually, driven by increased demand for disability insurance, analytics tools, and claims automation.