US Insurance Analytics Market Size Likely to Grow at a CAGR of 10.45% By 2034

Market Size and Growth

The US Insurance Analytics Market size is forecast to grow at a CAGR of 10.45% from 2025 to 2034. The market is expected to reach USD 13206.3 Million by 2034, up from USD 4887.6 Million in 2025.

Overview

According to an industry expert at CMI, the U.S. Insurance Analytics Market relies on rapid digitalization of the insurance industry, rising regulatory compliance, and increased implementation of AI and cloud-based technology. In addition, InsurTech accounting for the growing demand for personalized, usage-based policies will likely create profitable avenues for the market in the forecast period.

Key Trends & Drivers

• Insurers Rapidly Adopt AI and Predictive Analytics: U.S. insurers are moving faster to embrace artificial intelligence (AI), machine learning, and predictive analytics to strengthen underwriting, enhance efficiency for claims management, and detect fraud more quickly. The use of technology enables insurers to make better decisions based on the data, automate processes that drive operational efficiency, and ultimately provide more value to consumers.

• Insurers Personalize Policy Pricing and Digitize Claims: Insurers are personalizing their pricing and using analytical systems to provide a digitally simplified claims process while also fulfilling the consumer’s desire for customization in insurance solutions. The underwriting of a policy is now influenced by the behavioral, social, and demographic aspects of the claim relationships and the additional data used, while product development is supported with data, both historical and behavioral, to build products, and claims are resolved with data that supports a digital-first approach.

• InsurTech Startups Disrupt Traditional Insurance Models: InsurTech companies have leveraged big data and artificial intelligence to create tech-enabled insurance paradigms that are challenging legacy insurance companies to modernize. These swift disruptors are utilizing technology to change how customers engage, automate policy issuance, and provide risk insights, in addition to providing the analytics platforms they build.

• Regulators Drive Analytics Adoption for Fraud and Compliance: Regulators are not just suggesting insurers adopt analytics services, they’re making insurers employ analytics tools whenever they engage with customer/member fraud and compliance, etc. Insurers will soon be investing in audit-ready, intelligent analytics ecosystems, where the constituted use of analytics in risk governance will be evolving with their regulatory governance.

• Insurers Accelerate Shift to Cloud-Native Analytics: Insurers increasingly use cloud-native analytics platforms in pursuit of scalability, cost reduction, and real-time insights. Cloud solutions in particular appeal to middle-market carriers to modernize workflow and respond to changes in regulatory and market environments quickly.

Report Scope

SWOT Analysis

• Strengths: Insurance analytics is an emerging function across underwriting, claims, risk monitoring, and customer customization. The U.S. market benefits from a mature digital infrastructure, early adoption of AI and cloud systems, and an engaged regulatory environment around data transparency and fraud detection. Further, traditional tech leaders and InsurTech startups provide a large pool of competition and emergent market forces. Moreover, the rise of real-time analytics in transforming/dynamizing decision making contributes significantly to the way of operating.

• Weaknesses: Outdated IT systems hinder modern analytics from being combined quickly, rather wasting time and slowing down digitization efforts overall. The higher complexity of transitioning to cloud-native while still maintaining compliance adds a burden on behalf of operational tasks. Coupled with the shortfall of qualified data science professionals with domain knowledge in insurance, this means the scale and speed of adoption are challenged. Smaller and mid-size insurers that would benefit from advanced analytics realistically have neither the ability nor the requisite infrastructure to roll out advanced analytics on their own.

• Opportunities: The expansion of SaaS-based analytics and data platforms offers small and mid-sized insurers and brokers easy access to sophisticated and scalable tools, with minimal infrastructure costs. The growing use of geospatial and weather analytics will enable insurers to better model catastrophic risks and segment their portfolios. At the same time, the growing use of AI-enabled chatbots, NLP tools, and automation for customer service and claims processing is providing large-scale operational changes to improve the policyholder experience. The growing partnerships between tech firms and insurance companies also provide a robust innovation pipeline of new products and incidental services with clear advantages to the customer.

• Threats: The insurance analytics space also faces increasingly sophisticated cybersecurity attacks as companies continue to keep, analyse, and process increasingly sensitive customer data in cloud environments. The regulatory environment surrounding data privacy represents a significant risk exposure to communication failures and unintended operational mistakes. The threat of increased competition from both legacy and new InsurTech companies presents potential pricing pressures on revenue margins. The speed of technology change can also become a threat, outpacing some insurers’ ability to manage the changes and evolving experiences, ultimately making their services obsolete or leading to other failures in transformation.

List of the prominent players in the US Insurance Analytics Market:

• The Carlyle Group Inc.
• RELX PLC ADR
• Microsoft Corp
• MicroStrategy Inc.
• Oracle Corp
• Pegasystems Inc.
• Sapiens International Corp NV
• Salesforce Inc.
• Verisk Analytics Inc.
• Others

The US Insurance Analytics Market is segmented as follows:

By Component

• Tool
• Service

By Application

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

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

By Deployment

• On-premise
• Cloud