How big is the claims processing market | Trends & Forecast 2031

Q: What is the current size of the claims processing market?

The claims processing market was valued at USD 56.2 billion in 2024 and is projected to reach USD 85.9 billion by 2031.

Q: What is the growth rate of the claims processing market?

The claims processing market is expected to grow at a CAGR of 6.3% from 2025 to 2031.

Q: Which applications contribute the most in the claims processing market?

Health insurance, life insurance, auto claims, property insurance, and third-party claims administration.

Q: What is driving demand in the claims processing market?

Automation needs, rising insurance penetration, digital-first operations, and focus on reducing fraud and manual errors.

Q: What challenges does the claims processing market face?

Data security issues, high system integration costs, compliance complexity, and resistance to legacy system upgrades.

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6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

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Code: MTA5261

Publication Date: Jul 2025

How big is the Claims Processing Market?

According to 6Wresearch internal database and industry insights, the claims processing market was valued at approximately USD 56.2 billion in 2024 and is projected to reach USD 85.9 billion by 2031, growing at a CAGR of 6.3%.

This growth is driven by increasing automation in insurance operations, rising healthcare expenditure, and demand for efficient, error-free claim settlements.

Key Growth Drivers of the Claims Processing Market

Increased policy life, auto and health insurance in the globe.
Increasing demand of automation to minimize human errors and delays in processing
Claim validation and fraud detection on integration of AI, RPA, and analytics
Best practice among insurers and TPAs will be increasing usage of cloud-based claims platforms
Put emphasis on enhancing customer experience by the use of digital workflows

Claims Processing Market Trends

The claims processing market is witnessing rapid digitalization, with insurers deploying end-to-end cloud-based systems. Robotic Process Automation (RPA) is streamlining repetitive claim tasks, while AI tools assist in fraud detection and decision-making. Mobile-friendly interfaces and self-service portals are enhancing policyholder engagement. There is growing collaboration between insurtech firms and legacy providers to modernize backend systems. Healthcare and auto insurance dominate processing volumes globally.

Emerging Developments in the Claims Processing Market

Recent developments include blockchain-based claims tracking to ensure transparency and reduce disputes. Predictive analytics and real-time data integration are improving claim outcomes and reducing turnaround time. Virtual assistants are being adopted for claim status updates and documentation assistance. Regulatory technologies (RegTech) are helping organizations ensure compliance during digital claims handling and cross-border processing.