Europe Insurance Analytics Market 2026 – 2035

Reports Description

As per the Europe Insurance Analytics Market analysis conducted by the CMI team, the Europe insurance analytics market is expected to record a CAGR of 15.15% from 2025 to 2034. In 2026, the market size was USD 5.91 Billion. By 2035, the valuation is anticipated to reach USD 21.02 Billion.

Overview

Insurance analytics uses advanced modeling techniques and data analysis in the insurance industry for extracting valuable insights from the large quantities of data. It includes interpreting data after collecting and processing data pertaining to claims, policyholders, risk management, and various other insurance-related processes. The major objectives are improvements in decision-making, enhancing operational efficiency, managing risks efficiently, and developing consumers’ deeper understanding of behavior.

With fierce competition in the insurance sector, the requirement of analytical solutions keeps on rising so as to gain a competitive edge. The businesses are into the adoption of efficient and scalable solutions for managing the risks, responding to disasters, and meeting regulatory requirements.

Market Highlights

• By component, the tool segment dominated the Europe insurance analytics market in 2025 with 67.35% of the overall share.

• By component, the service segment is expected to witness the fastest CAGR of 17.12% during the forecast period.

• By application, the risk management segment dominated in 2025 with 49.98% of the overall share.

• By application, customer management & personalization is expected to witness the fastest CAGR of 18.27% during the forecast period.

• By deployment, the cloud segment dominated in 2025 with 77.34% of the overall share.

• By deployment, the on-premise segment is expected to witness the fastest CAGR of 16.37% during the forecast period.

• By enterprise size, the large enterprises segment dominated in 2025 with 53.32% of the overall share.

• By enterprise size, the small & medium-size enterprises segment is expected to witness the fastest CAGR of 20.37% during the forecast period.

• By end-use, insurance companies dominated in 2025 with 64.32% of the overall share.

• By end-use, government agencies are expected to witness the fastest CAGR of 21.37% during the forecast period

Key Trends & Drivers

• Growing Requirement of Big Data and Predictive Modeling

Data is amongst the vital assets an insurer can boast. Predictive analysis is helping the businesses in making proper use of that data. The capacity of predictive modelling in insurance software is capable of helping in defining and delivering the rate changes in a more efficient manner. Big data and predictive analysis together help insurers with insights like predicting consumer behavior and extending support to underwriting processes.

Property & casualty (P&C) insurance companies collect data from agent interactions, telematics, smart homes, customer interactions, and social media for better understanding the claims and underwriting. Insurance analytics thus helps in this way.

What’s trending in the Europe Insurance Analytics Market?

The ongoing trend implies hyper-personalization, which uses data for dynamic, tailor-made policies, wherein insurance analytics in Europe is moving beyond the static models, particularly as the customers are willing to share data for better coverage. AI & ML are being deployed, which prove to be essential for detection of fraud, predictive analytics, automation of complex tasks, and processing claims. Emphasis on seamless self-service, omnichannel experience, and advisory-led interactions are boosting the customers’ lifetime value. Adoption of telematics & IoT is driving innovation in the usage-based insurance (UBI) for tailored premiums and safer roads.

What would be Business Impact of the U.S. tariffs on the Europe Insurance Analytics Market?

Rising costs of the imported parts (construction materials, vehicles) do raise rebuilding expenses and repair, thereby compelling the insurers to either witness shrinking margins or increase premiums. Also, higher costs of underlying goods (such as cars) could reduce new sales, thereby impacting insurers’ risk profiles. Economic pressures could raise fraudulent claims, which could necessitate better analytics for detection. Better European bond yields do offer a certain counterbalance, but solvency metrics, on the whole, face pressure. In all, the U.S. tariffs are likely to create a complex environment wherein uncertainty and higher costs can challenge conventional lines, while simultaneously catalyzing demand for the specialized coverages.

Key Threats

With the banking sector turning out to be more secure, the hackers are shifting to more vulnerable target insurance companies. The insurers are maintaining a voluminous database of Personally Identifiable Information (PII) pertaining to policyholders, which does make a good target for identity thieves, encompassing birthdates, names, streets, social security numbers, email addresses, employment data (like income), and health data. Information regarding the personal details as mentioned above could be the target for hackers. Also, many insurers have been reported to invest in security tools that provide a false sense regarding security. As per the KPMG Global CEO Outlook Survey, merely 43% of the insurance executives mentioned that their organizations were prepared for cyberattacks on their insurance companies.

Opportunities

The organizations are witnessing digital shifts in types, volumes, and transactions related to customer interaction. In other words, the timeline for developing rapport with customers is visibly compressed now. The techno-savvy consumers are already increasing use of digital tools, whereas the individuals who were reluctant to interact through digital means like mobile finance, e-Commerce, and video calls are getting transformed into digitally engaged ones. Data and its feedback obtained from social media and smart devices are more direct than before. As an outcome, organizations are setting a foundation for thinking in a more holistic manner pertaining to the workforce’s flexibility across consumers’ engagement footprints. This, in turn, is bound to drive noteworthy alterations in consumer sales and extend support to digital operating models.

Category Wise Insights

By Component

• Tool

The tool segment dominated the Europe insurance analytics market in 2025 and the scenario is expected to persist during the forecast period. This is credited to the rising demand for mobile-based insurance solutions, particularly with increased usage of smartphones. The other driver of advanced analytics tools is the rise in the frequency of monetary fraud. The insurers are increasingly using analytics for gaining insights into the expectations of the consumers, thereby letting them design customized products and improve claims, underwriting processes, and risk management.

• Service

The service segment is expected to witness the fastest CAGR in the Europe insurance analytics market during the forecast period. This is owing to the rising demand for analytical services that improve operational efficiency and enhance customer experience. The segment is further sub-segmented into professional and managed services. With insurance companies seeking to leverage the data-driven insights for customized service offerings and better decision-making, the service segment is poised to grow on a significant note.

By Application

• Claim Management

AI is capable of handling data validation after collection, thereby curtailing manual effort, minimizing the errors, and expediting settlements, which need strong analytics. Advanced analytics do identify complex fraud patterns, thereby moving beyond the basic checks to advanced anomaly detection that is necessary for exercising control over the costs. Self-service portals and Chatbots make provisions for real-time support, whereas data analytics aids in personalizing interactions, thereby addressing customers’ demands for transparent service through digital means.

• Risk Management

The risk management segment dominated the Europe insurance analytics market in 2025 and the status quo is expected to remain unchanged during the forecast period. This is due to the rising requirement of automated insights enhancing the decision-making of underwriters. Analytics pertaining to risk management does unleash hidden data patterns, wherein potential risks can be identified and insurers could take preventive measures.

• Process Optimization

Automation does speed up the routine tasks, AI reduces the processing times by close to 30%, and it saves on the overheads in the long run. Advanced analytics using AI do allow for dynamic pricing, hyper-personalized risk profiling, and more precise underwriting, thereby raising profitability and reducing losses. AI-powered Chatbots, faster service, and personalized product offerings through streamlined processes do boost retention and engagement. Automating back-office tasks does free up human resources for complex tasks, whereas cloud-based solutions do offer real-time data access and scalability.

• Customer Management & Personalization

Customer management & personalization segment is expected to witness the fastest CAGR in the Europe insurance analytics market during the forecast period. This is driven by the insurers expanding the usage of analytics for enabling proactive risk management, personalize offerings, and delivering customized policy discounts – all of which have been designed for aligning with customer needs one-on-one.

By Deployment

• On-premise

The on-premise segment is expected to witness the fastest CAGR in the Europe insurance analytics market during the forecast period. This is credited to the rising competition in insurance sector, which is compelling the market players to go for advanced analytics solutions for enhancing operational efficiency and decision-making. The concerns pertaining to data security also catalyze the trend, as the on-premise solutions make provisions for controlling sensitive information, thereby assuring of the fact that only authorized personnel are liable to access it.

• Cloud

The cloud solutions segment dominated the Europe insurance analytics market in 2025 and the situation is expected to remain the same during the forecast period. This is due to the fact that cloud deployment facilitates seamless integration with the third-party applications and improves the security of the online insurance services. The pay-as-you-go model does reduce the costs involved with initial infrastructure. The organizations are increasingly favoring the cloud-based applications owing to the regulatory compliances. Cloud solutions also provide automatic updates as well, thereby letting users access the latest versions of software without disturbing operations.

By Enterprise Size

• Large Enterprises

Large enterprises are increasingly going for insurance analytics for enhancing customer loyalty, reducing infrastructure costs, and complying with the evolving regulations. The large enterprises are using analytics tools for processing both – unstructured data (such as social media insights) and structured data (such as policyholder information). Analytics help large companies in the creation of more simplified and transparent products, the prediction of consumer behavior, and the design of personalized policies, thereby resulting in enhanced consumer retention and satisfaction.

• Small & Medium Enterprises

Small & medium enterprises are expected to witness the fastest CAGR during the forecast period. This is due to the necessity of improved claims management using data-driven decision-making and streamlined processes, which help in selecting proper coverage. Moreover, analytics do contribute to cost-efficiency by providing competitive pricing and facilitating proactive risk management for mitigating potential losses. Such tools are empowering the SMEs regarding management of risks while enabling optimization of insurance investments.

By End-use

• Insurance Companies

The insurance companies dominated the market in 2025 and they are expected to continue with the winning streak during the forecast period. This is due to increased demand for insurance services followed by the requirement of advanced analytics in monetary reporting. Plus, with third-party data sources expanding, insurers’ reliance on data from internal sources such as social media, smartphones, computers, and various other devices does provide prime behavioral insights for the insurers.

• Government Agencies

Mandates pertaining to data security coupled with privacy under GDPR do compel the insurers to use analytics for compliance, thereby ascertaining appropriate handling of personal data, which does raise the demand for various analytics solutions. Also, the need for risk management coupled with reporting under Solvency II is significantly driving investment in analytics tools for precise compliance and capital management. Moreover, efforts made for harmonizing monetary regulations across the European Union are driving the requirement of unified analytical approaches, thereby encouraging wider adoption.

• Third-party Administrators, Brokers & Consultancies

The third-party administrators, brokers & consultancies utilize analytics for cost containment, fraud detection, and quicker claim settlements, thereby enhancing insurer efficiency and customer efficiency. They are also leveraging predictive analytics and AI for analyzing huge datasets, identifying trends, and managing complex claims in an effective manner. They are also integrating analytics into the self-service portals for the policyholders.

Historical Context

Growing focus on improving consumer experience coupled with the ongoing trend of digitalization is keeping the cash registers ringing for the Europe insurance analytics market. Continual technological advancements in the insurance sector, along with insurance analytics increasingly being adopted by the government agencies, insurance companies, brokers & consultancies, and third-party administrators are catalyzing the market.

The players based in France, Germany, and the UK are leveraging insurance analytics for enabling claim processes, driving the operational efficiencies, and streamlining the premium collections. Also, insurance analytics help in identifying determinants and characteristics for potential risk groups, resulting in precise predictions of claims with assessments of risks.

How is AI impacting the Europe Insurance Analytics Market?

AI is capable of analyzing huge datasets (social, telematics, and health) for risk profiles, thereby curtailing underwriting costs by close to 50% along with processing times from weeks to minutes. The insurers can offer tailored premiums with products on the basis of granular, real-time data, thereby facilitating coverage for risks that were uninsurable previously (for instance – flood risk with detailed geo-data and HIV carriers). AI-powered bots can handle the claims from start to finish, thereby reducing the resolution times by 30% and enhancing customer satisfaction. AI can also spot complex data patterns, whereby it could combat yearly fraud of €13 Bn happening all over Europe. The customers can also cut down on premiums then.

Report Scope

Key Developments

The Europe insurance analytics market is witnessing a significant organic and inorganic expansion. Some of the key developments include –

• In March 2020, Board International released the upgraded version of Board 11.2, its leading Board decision-making platform. The platform is now more flexible and faster, with expediting business reporting, forecasting, and planning being done using a unified approach.

Leading Players

The Europe insurance analytics market is highly competitive, with a large number of service providers globally. Some of the key players in the market include:

• SAP
• Board International
• RiskVille
• CyberCube
• Artivatic ai
• Others

These firms apply a plethora of strategies to enter the market, including innovations and mergers and acquisitions, as well as collaboration. The Europe insurance analytics market is shaped by the presence of diversified players that compete based on product innovation, vertical integration, and cost efficiency.

The Europe Insurance Analytics Market is segmented as follows:

By Component

• Tool
• Service

By Application

• Claim Management
• Risk Management
• Process Optimization
• Customer Management & Personalization

By Deployment

• On-premise
• Cloud

By Enterprise Size

• Large Enterprises
• Small & Medium Enterprises

By End-use

• Insurance Companies
• Government Agencies
• Third-party Administrators, Brokers & Consultancies

Regional Coverage:

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe