According to the new report by Global and Markets, Global Insurance Fraud Detection Market Report and Forecast 2021-2026, the global insurance fraud detection market attained a value of approximately $2.7 billion in 2020. Aided by rising adoption of fraud detection services in small and medium enterprises, the market is projected to grow at a Compound Annual Growth Rate of 25.6% between 2021-2026 further to reach $10.75 billion by 2026.

Insurance fraud detection refers to services and systems which are deployed to track and analyse data to identify irregularities and provide real-time monitoring for fraud prevention. Different types of frauds can include identity theft, billing and payment frauds, cyber-attacks, and false claims. Fraud detection solutions like fraud analytics, authentication, and governance, risk, and compliance are employed for effective management of fraudulent activities. Fraud detection systems are crucial to safeguard the interests of both, insurer and insured across various sectors including the healthcare, automobile, and infrastructural.

The market growth of insurance fraud detection can be attributed to integration of technological advancements in detection services including Artificial Intelligence (AI), Machine Learning (ML) and Internet of Things (IoT).

The healthcare sector witnessed an invigorated rise in the number of suspicious claims globally, and hence insurance companies are making robust investments in fraud detection services, which is augmenting the market growth.

With the outburst of coronavirus pandemic, and the subsequent digitisation of operations, rising cases of cyber-attacks and identity thefts are propelling the market growth of fraud detection services. With rising prevalence of e-commerce retail channels and mobile banking applications increasing adoption of authentication solutions like biometric solutions, and face and voice recognition systems are fuelling the growth of the industry. In addition, the healthcare sector witnessed an invigorated rise in the number of suspicious claims globally, and hence insurance companies are making robust investments in fraud detection services, which is augmenting the market growth.

Furthermore, with availability of cost-friendly, effective, and advanced fraud detection services, small and medium enterprises are increasingly deploying fraud analytics in their working systems to protect the business from potential risks of frauds, hence, adding to market growth.

The market report analyses the market based on technologies, organization, deployment, applications, and major regions. The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments of the key players in the industry.