Insurance market to hit $44.8b by 2032

APAC is the fastest-growing market for insurance analytics.

The world’s insurance market was valued at $12.7b in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 15.1% from 2024 to 2032.

This would be equivalent to a market size of $44.8b in eight years, data by Fortune Business Insights showed.

As competition intensifies within the insurance sector, companies are turning to scalable and efficient analytical solutions to manage risks, respond to disasters, and meet regulatory requirements. The COVID-19 pandemic has further accelerated the demand for insurance analytics. 

Insurers have relied heavily on data-driven insights to navigate the unique risks posed by the pandemic, using predictive models for effective risk management and innovation.

Regionally, Asia Pacific is the fastest-growing market for insurance analytics, driven by government support, economic growth, rapid digitalisation, and widespread adoption of cloud-based services. Europe is also experiencing growth due to technological advancements and the use of analytics to manage regulatory risks and reduce claim processing costs. 

In contrast, South America and the Middle East & Africa are expected to see slower growth as the adoption of insurance analytics is still in its early stages. Meanwhile, North America holds the largest market share, with insurers using advanced tools for risk assessment and policyholder protection, supported by significant technological investments in the sector.