Insurance Fraud Detection Market Forecast 2026-2031: A USD 20.2 Billion Opportunity as AI-Led Detection and Digital Verification Drive Growth, Says Mordor Intelligence

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Jun 05, 2026, 10:46 ET

HYDERABAD, India, June 5, 2026 /PRNewswire/ -- According to Mordor Intelligence, the global insurance fraud detection market is estimated at USD 8.52 billion in 2026 and is projected to reach USD 20.2 billion by 2031, growing at a CAGR of 18.85% during the forecast period (2026–2031). The growth of the insurance fraud detection industry is primarily driven by the rising complexity and volume of fraudulent insurance claims, alongside the increasing adoption of artificial intelligence and machine learning technologies by insurers. Companies are leveraging advanced analytics and predictive tools to identify anomalies, streamline claim processes, and minimize financial losses. With heightened regulatory scrutiny and the push for transparency in claims processing, the insurance fraud detection market size is poised for substantial expansion over the next five years.

Regional Market Insights

Insurers in Asia Pacific are leveraging mobile-first platforms, digital IDs, and innovative local solutions to improve fraud detection, even in areas with limited connectivity. Advanced data from social IDs and IoT devices helps carriers identify suspicious patterns and prevent losses more effectively.

In North America, strong regulatory frameworks combine with cutting-edge technologies like behavioral biometrics and connected vehicle data, allowing insurers to detect orchestrated claims and maintain secure, compliant fraud monitoring.

Emerging Solutions in Insurance Fraud Detection Market

Telematics and IoT Enhancing Fraud Detection

The rise of connected devices and telematics is helping insurers spot fraudulent activity more effectively. By analyzing real-time driving behavior and IoT data from vehicles or properties, insurers can identify unusual patterns and coordinated schemes, enabling faster and more accurate fraud prevention.

AI-Driven Claims Automation Transforming Insurance

Top insurers are increasingly adopting AI-powered tools to streamline claims processing. By automating reviews, they can quickly detect suspicious claims and anomalies, improving efficiency while maintaining accuracy. Advanced techniques like natural language processing and computer vision allow insurers to analyze notes, images, and videos almost instantly, helping prevent fraudulent payouts before they occur.

Ashish Gautam, Senior Research Manager, Mordor Intelligence says, "As the Insurance Fraud Detection Market evolves in response to growing claims volumes and operational oversight requirements, organizations need research that distinguishes durable trends from short-term market activity. Mordor Intelligence supports this need through transparent market frameworks, consistent validation practices, and balanced analysis that decision-makers can evaluate with confidence."

Table of Contents (Partial) - Insurance Fraud Detection Market
1. INTRODUCTION

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

4.1 Market Overview
4.2 Market Drivers
- 4.2.1 Rising Need for Zero-Defect Manufacturing
- 4.2.2 Increasing Adoption of Vision-Guided Robotics
- 4.2.3 Growing Demand for 3D Vision in Electronics Miniaturisation
- 4.2.4 and more
4.3 Market Restraints
- 4.3.1 Lack of Skilled Machine Vision Integrators
- 4.3.2 High Cost of High-Resolution and Hyperspectral Cameras
- 4.3.3 Cybersecurity Risks in Cloud-Connected Vision Systems
- 4.3.4 Supply Chain Volatility of Image Sensor Semiconductors
4.4 Industry Ecosystem Analysis
4.5 Impact of Macroeconomic Factors
4.6 Regulatory Landscape
4.7 Technological Outlook
4.8 Porter's Five Forces Analysis
- 4.8.1 Bargaining Power of Suppliers
- 4.8.2 Bargaining Power of Buyers
- 4.8.3 Threat of New Entrants
- 4.8.4 Threat of Substitutes
- 4.8.5 Intensity of Competitive Rivalry

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

5.1 By Component
- 5.1.1 Hardware
- 5.1.1.1 Vision Systems
- 5.1.1.2 Cameras
- 5.1.1.3 Optics and Illumination Systems
- 5.1.1.4 and more
5.2 By Product Type
- 5.2.1 PC-Based
- 5.2.2 Smart Camera-Based
5.3 By Imaging Type
- 5.3.1 2D Imaging
- 5.3.2 3D Imaging
- 5.3.3 Hyperspectral and Multispectral Imaging
5.4 By End-User Industry
- 5.4.1 Automotive
- 5.4.2 Electronics and Semiconductors
- 5.4.3 Food and Beverage
- 5.4.4 Healthcare and Pharmaceutical
- 5.4.5 and more
5.5 By Deployment Mode
- 5.5.1 On-Premise
- 5.5.2 Edge/Embedded
- 5.5.3 Cloud-Based
5.6 By Geography
- 5.6.1 North America
- 5.6.1.1 United States
- 5.6.1.2 Canada
- 5.6.1.3 Mexico
- 5.6.2 South America
- 5.6.2.1 Brazil
- 5.6.2.2 Argentina
- 5.6.2.3 Chile
- 5.6.2.4 Rest of South America
- 5.6.3 Europe
- 5.6.3.1 United Kingdom
- 5.6.3.2 Germany
- 5.6.3.3 France
- 5.6.3.4 Italy
- 5.6.3.5 Spain
- 5.6.3.6 Russia
- 5.6.3.7 Netherlands
- 5.6.3.8 Rest of Europe
- 5.6.4 Asia Pacific
- 5.6.4.1 China
- 5.6.4.2 Japan
- 5.6.4.3 India
- 5.6.4.4 South Korea
- 5.6.4.5 Australia
- 5.6.4.6 Rest of Asia Pacific
- 5.6.5 Middle East
- 5.6.5.1 Gulf Cooperation Council
- 5.6.5.2 Turkey
- 5.6.5.3 Israel
- 5.6.5.4 Rest of Middle East
- 5.6.6 Africa
- 5.6.6.1 South Africa
- 5.6.6.2 Nigeria
- 5.6.6.3 Kenya
- 5.6.6.4 Egypt
- 5.6.6.5 Rest of Africa

6. COMPETITIVE LANDSCAPE

6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
- 6.4.1 Cognex Corporation
- 6.4.2 Keyence Corporation
- 6.4.3 Omron Corporation
- 6.4.4 Teledyne Technologies Incorporated
- 6.4.5 Sony Group Corporation
- 6.4.6 Atlas Copco AB (ISRA Vision)
- 6.4.7 IDS Imaging Development Systems GmbH
- 6.4.8 National Instruments Corporation
- 6.4.9 MVTec Software GmbH
- 6.4.10 Basler AG
- 6.4.11 and more

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

7.1 White-Space and Unmet-Need Assessment

For details on other market segments and the full table of contents, visit -
https://www.mordorintelligence.com/industry-reports/insurance-fraud-detection-market

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