What will drive APAC’s insurance claims market to grow 16.6% annually?

AI and data analytics will catapult the global industry to bag $638.3b by 2032.

Asia-Pacific’s insurance claims services market is expected to grow fastest, at a 16.6% compound annual growth rate (CAGR), fueled by widespread smartphone adoption and increased focus on mobile claims channels.

Globally, the industry’s revenue is expected to rise from $193.8b in 2022 to $638.3b by 2032, representing a CAGR of 12.8%, according to a report by Allied Market Research.

Technological advances are reshaping claims operations. Digital platforms, artificial intelligence, and data analytics are enabling insurers to process claims faster and more accurately. 

Automation and data-driven insights help review claims more efficiently, whilst mobile apps and digital portals allow policyholders to submit and track claims in real time.

Property and casualty insurance accounted for the largest share of the market in 2022, making up nearly 40% of global revenue, and is expected to retain its lead. 

Life insurance claims, however, are projected to grow fastest, at a CAGR of 16.8%, as insurers increasingly offer personalised policies tailored to individual behaviours and lifestyles.

Regionally, North America held nearly 40% of the market in 2022, driven by heavy investment in digital claims technologies.