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Global Insurance Software Market size is estimated to grow by USD 6,453.98 million between 2022 and 2027 accelerating at a CAGR of 7.22%.
Natural catastrophes, including droughts, floods, hurricanes, tsunamis, earthquakes, epidemics, and volcanic activity, reached approximately 10,492 in 2021-2022. Tornado-related events in the US increased insurance demand due to property damage in the millions. These catastrophes has increased the demand of insurance software market. Proactive individuals and organizations are adopting insurance software to simplify processes, analyze data, and adjust policies for better protection. These factors are expected to fuel the growth of the Insurance software market.
This report extensively covers market segmentation by deployment (on-premises and cloud-based), type (life insurance, accident and health insurance, property and casualty insurance, and others), and geography (North America, APAC, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing adoption of insurance in developing countries is notably driving market growth, although factors such as changing skill requirements may impede market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Insurance Software Market Driver
The increasing adoption of insurance in developing countries is notably driving market growth. The markets in developed countries have become saturated. This is because of the increased awareness and early adoption of insurance by consumers. Moreover, developed nations have stringent government regulations for the subscription to insurance, including insurance for life and health, property and casualty, or specialities such as marine and aviation.
Furthermore, the digital transformation of insurance has resulted in a rapid increase in the demand for upgraded customer-facing software. With the increasing demand for insurance in developing countries, the demand for software is growing at a fast pace. The traditional methods of insurance are no more adapted. In mature markets, insurers are moving all the new and existing insurance policies to digital platforms. Thus, we expect to see a manifold increase in the importance and growth of the market during the forecast period.
Significant Insurance Software Market Trend
Integration of wearables into customer engagement metrics for the life insurance software market is an emerging trend in the market. The adoption of sensor-based wearables is redefining customer engagement methods and processes for life insurers. These wearables aid in the real-time tracking of customer lifestyle habits, physical activity levels, and food habits. Real-time consumer data provides insurers with immense opportunities to improve their services and make appropriate business decisions. In addition, based on the most recent data, they can suggest or come up with modified products to suit customer lifestyles and maximize insurance company profits by minimizing the risks.
The features of wearables can only be used if they are integrated into online insurance software. The insurance software can use the collected data to perform analysis not only for an individual but at a mass scale to redefine the product portfolio and redesign clauses for claims and disbursal. Hence, the above-mentioned factors are expected to fuel the growth of the market in focus during the forecast period.
Major Insurance Software Market Challenge
The changing skill requirements are major challenges impeding the market. Technological advances are driving the insurance industry. Customer-facing applications are being introduced in the market. In addition, data analytics is increasingly being integrated into the main insurance software to derive insights, detect fraud, and predict claim patterns.
The use of technologies, such as blockchain, in insurance software, can increase the efficiency and security of paperwork. This assures customers of the safety of their credentials and classified data. However, the right skills are required to understand and use such high-tech innovations. Vendors can make the software user-friendly as the market is becoming customer-centric. In addition, customer trust in the brand increases if they can understand the process. Thus, the data needs to be readable and comprehensible to customers so that it is useful to them. The industry is facing a challenge in finding a skilled workforce to implement digital innovations. This is hindering technology adoption among insurance companies. Hence, such factors are expected to hamper the growth of the global market during the forecast period.
Key Insurance Software Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Insurance Software Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Axxis Systems SA -The company operates in one segment which offers software business for third-party companies. The key offerings of the company include insurance software.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the on-premises segment will be significant during the forecast period. The market is mainly operated by large organizations that consider data privacy and security a priority. These organizations focus more on functionality than on cost-effectiveness. The high security and data privacy offered by the on-premises deployment model drive market growth.
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The on-premises segment USD 9,545.00 million in 2017 and continued to grow until 2021. The growth of this segment can be attributed to various unique properties of the on-premises deployment model Some of them include an organization's complete control over the in-house server, IT infrastructure, in-house IT team, and intranet; the usage of the software in core applications by insurance company branches that operate out of rural areas that may not have proper internet access to use the cloud as the primary mode of conducting business; and unlike the cloud software, the on-premise software used by insurance companies have control over the maintenance of data security and privacy and adherence to government rules, regulations, and protocols. In this technologically advanced and threat-enhanced environment, enterprise risk management is of prime importance. Hence, the above-mentioned factors are expected to fuel the growth of the on-premises segment in the global market during the forecast period.
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North America is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
North America has been the largest market in the world in terms of gross written premium volume of insurance policies. With a steady revenue flow in the insurance industry, several technology-driven innovations are expected to be implemented. This is expected to create a demand for insurance software.
Other key factors propelling the growth of the market in North America are the highly industrialized economy of several countries and the significant use of the internet for payments and data transactions within or between organizations. Since the dependency on the internet, wireless technologies, and cloud-based services is high in North America, organizations in this region are increasing their spending on advanced solutions to remain competitive in the market. Furthermore, technologies such as AI and the IoT are gaining high traction among end-user industries. For instance, Wipro Ltd. Provides an IoT-based insurance solution named Insurance connected IoT, which helps insurers to collect granular data from a vast number of connected sensors to enable cost control, risk control, variable pricing, and to drive customer propositions. This is expected to support the growth of the market in the region during the forecast period.
In 2020, most North American countries were severely affected by COVID-19. This forced governments to impose lockdowns to contain COVID-19, which resulted in a decline in the operations of banks and other financial institutions in the region during the initial months of 2020. However, adopting digital borrowing and lending funds is expected to boost online platforms, including insurance software. Also, the large-scale vaccination drives administered to every individual in the region in 2021 led to the resumption of business activities. Therefore, the majority of the low-income groups are in the process of establishing small and medium-sized businesses (SMBs) and insurance among customers. This accelerates the demand for insurance software in the region, which will further drive the growth of the market in focus during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Insurance Software Market Scope |
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Report Coverage |
Details |
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Page number |
173 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 7.22% |
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Market growth 2023-2027 |
USD 6,453.98 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
6.66 |
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Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
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Performing market contribution |
North America at 36% |
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Key countries |
US, China, Japan, UK, and France |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Accenture Plc, Acturis Group, Applied Systems Inc., Aptitude Software Group Plc, Axxis Systems SA, Dell Technologies Inc., Ebix Inc., Enlyte, Guidewire Software Inc., Hyland Software Inc., International Business Machines Corp., Jenesis Software, Microsoft Corp., Nest Innovative Solutions Pvt. Ltd., Oracle Corp., Rocket Software Inc., Roper Technologies Inc., Salesforce.com Inc., SAP SE, and Solartis LLC |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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