Outsource Investigative Resource Market Size, Share, Growth and Global Industry Analysis By Type (Health Insurance Fraud Investigation, Car Insurance Fraud Investigation, Home Insurance Fraud Investigation, Life Insurance Fraud Investigation, and Others) By Application (Large Insurance Companies and Medium and Small Insurance Companies), Regional Insights, and Forecast To 2031

Updated On: 01 April 2024

Outsource Investigative Resource Market Report Overview

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The global outsource investigative resource market size was USD 499 million in 2021 and is expected to reach USD 1054.11 million in 2031, at a CAGR of 7.7% during the forecast period. 

Insurance companies concede the huge fraud-related losses, the magnitude of the issue, and their necessity to act illegally in order to address it. Insurance fraud has become a widespread parlance in the insurance industry, despite the fact that it is difficult to identify and punish. It is challenging to examine fraudsters because of their considerable range in age, income, occupation, race, and other demographic characteristics. Additionally, they are using more advanced techniques, such as exploiting the Internet to perpetrate intricate fraud schemes. Given that it is challenging to establish and competes for resources and attention with other crimes, insurance fraud is likewise a low priority for many authorities.

The enormous expense of combating fraud represents a significant issue to the insurance industry. Insurance companies either must have to make investments in both skilled investigators and in the ever-evolving techniques and technologies used in fraud investigations or assign the investigation to outsource investigative resource market. The insurance industry has been outsourcing the investigation so that it may concentrate on its core business because of the fraud issues that are always expanding and the difficulties in dealing with the complexity of these frauds. Additionally, the market for outsourced investigative resources will develop as a result of the exponential rise in fraudulent cases brought on by the increased demand for various types of insurance.

COVID-19 Impact: Halt In The Investigative Work Due To The Severe Lockdown

The global COVID-19 pandemic has been unprecedented and staggering, with outsource investigative resource market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the outsource investigative resource market growth and demand returning to pre-pandemic levels once the pandemic is over.

The governments across the world had stringent rules and lockdown conditions imposed as a result of the COVID=19 pandemic. As a result, there was a significant negative impact on global trade in goods and services. The market supply of outsourced investigative resources was impacted by the restrictions on movement and work-from-home. However, as fraud cases increase and the necessity for insurance becomes more apparent than ever, the market for outsourced investigative resources has seen substantial growth.

Latest Trends

"Specialized investigative tools  to rise due to the growing market demand"

Due to the public backlash against rising premiums spurred on by an increase in fraud, insurers now list fraud deterrence as their top concern, and Special Investigative Units (SIUs) are one of their most important anti-fraud tools. Additionally, there has been a considerable increase in the use of Deep Learning AI models to automatically detect fraud. The market for such outsourced investigative resources has emerged as a realistic and cost-effective alternative for the industry along with the relatively high reliability of these investigative resources

Outsource Investigative Resource Market Segmentation

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• By Type Analysis

According to type, the market can be segmented into Health Insurance Fraud Investigation, Car Insurance Fraud Investigation, Home Insurance Fraud Investigation Life Insurance Fraud Investigation and Others. The leading segment which holds the majority of the market share by type analysis is Life Insurance Fraud Investigation.

• By Application Analysis

Based on application, the market can be divided into Large Insurance Companies, and Medium and Small Insurance Companies. The Medium and Small Insurance companies holds the major market share by the application segment.

Driving Factors

"Shifting Business Strategy To Increase The Demand For Outsourcing Investigation "

The insurance industry has been expanding on an exponential basis with several new dimensions of the insurance segment such as life, health, travel and such other dimensions. Owing to the many facets of insurance, businesses are now placing a greater emphasis on their core area of business insurance—and outsourcing ancillary activities like fraud detection and investigation. The insurers' change in the business strategy to encourage the outsourcing of auxiliary businesses is expected to boost demand for outsource investigative resources market growth.

"Advanced AI Tools To Contribute To The Efficiency Of Investigative Process"

The investigating agencies have been investing heavily in several AI tools to learn, understand and detect ongoing fraud and criminal activities in the insurance market. The deep learning tools and new generation, more complicated machine learning models that are based on specific traits linked to fraudulent actions are part of the expanding innovation in the artificial intelligence sector and are immensely helpful in identifying fraudulent incidents. These cutting-edge AI tools are quite trustworthy and have made it possible to resolve fraud cases more quickly, which has helped in expanding the outsource investigative resources market share.

Restraining Factors

"Limited Application In Emerging Markets To Harm The Market Demand"

In the emerging market economies, the market for investigations has not yet reached its full potential. As a result, the insurance sector itself continues to perform the limited scope of investigations. The market for investigating demand for cheap careful expertise and training, both of which are yet in development. The world's emerging market nations may experience a decline in demand for outsource investigative resource due to the nascent insurance sector and limited application of the investigation.

Outsource Investigative Resource Market Regional Insights

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"Europe Is The Leading Due To Its Investigative Expertise "

The European region is one among the oldest region for the insurance industry. As a result, of its comprehensive development and integration with ancillary industries, the insurance market in this region dominates the position for the market share for outside investigative resources. The second-largest region for the market for outsourcing investigative resources is North America, which has a thriving service industry and is expected to continue to expand during the projected period.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• Abi (Belgium)
• Verity Consulting (U.S.)
• Global Investigative (U.S.)
• Suzzess (China)
• PJS Investigations (Australia)
• CoventBridge (U.S.)
• Corporate Investigative Services (U.S.)
• Robertson & Co (U.K.)
• ICORP Investigations (U.S.)
• Brumell (U.S.)
• NIS (France)
• John Cutter Investigations (JCI) (U.S.)
• UKPI (U.S.)
• Kelmar Global (U.S.)
• The Cotswold (U.S.)
• Tacit Investigations & Security (Canada)
• ExamWorks Investigation Services (U.K.)
• RGI Solutions (U.S.)
• Delta Investigative Services (U.S.)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, etc. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.