Insurance IT Spending Market in the US 2016-2020

Overview of the insurance IT spending market in the US

Technavio’s market research analyst predicts that the insurance IT spending market in the US will grow at a CAGR of around 3% by 2020.  At present, the insurance sector is implementing several digital strategies to reduce their IT infrastructure costs by deploying cost-effective IT solutions like cloud computing. In the US, digitalization of the insurance sector has helped many firms to manage customer complaints through superior online after-sales service solutions. Insurance firms are marketing their product offerings via omni-channels to augment their sales. This recent surge in the digital marketing of insurance products will result in the significant revenue increment of insurance firms during the forecast period.

Insurance firms in the US are deploying several big data and analytics technologies for effective risk and compliance management. Analytics solutions help insurance firms to increase their profitability and competitiveness in both domestic and global insurance markets. The increased application of advanced analytical tools such as descriptive, predictive, and prescriptive analytical solutions has helped insurance firms to obtain accurate estimation of the highly demanded products. Increased adoption of social media monitoring and analytical tools in the insurance sector will result in the elevated sale of insurance products in the coming years.

Segmentation by technology and analysis of the insurance IT spending market in the US

• IT services spending
• Hardware spending
• Software spending

Software spending by insurance firms in the US is the fastest-growing segment in the market and is expected to grow at a CAGR of around 4% by 2020. The US insurance firms are making huge investments in software spending as these solutions help manage separate business lines and new insurance offerings like annuity and pension policies. Software packages are major revenue generators for vendors in the insurance software market. The growing demand for integrated software packages will contribute to the growth of this market segment in the next four years.

Segmentation by industry sector and analysis of the insurance IT spending market in the US

• L&H insurance sector
• P&C insurance sector

The L&H insurance sector dominated the market in 2015 and occupied more than 56% of the total market share. This segment offers annuities, accident, and health insurance policies. The firms providing health insurance policies are investing in digital technologies such as mhealth technologies, big data, and analytics solutions. With several start-ups entering the market with specific solutions, IT spending in the L&H insurance sector will experience positive growth over the next four years.

Competitive landscape and key vendors

This market is highly competitive as many IT firms compete with similar kind of IT solution offerings. The level of competition in this market is expected to intensify during the forecast period, especially in cloud computing services owing to the growing demand for next-generation IT solutions. The market is witnessing the entry of several start-up firms, which are offering specific IT solutions for insurance firms.

Some of the key vendors in the market are -

• Accenture
• CSC
• Fiserv
• Guidewire
• Oracle

Other prominent vendors in the market include Andesa, Cognizant, EXL Service, FIS, Genpact, Majesco, Microsoft, Pegasystems, SAP, and StoneRiver.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the insurance IT spending market in the US?
• What are the key market trends impacting the growth of the insurance IT spending market in the US?
• What are the challenges to market growth?
• Who are the key vendors in the insurance IT spending market in the US?
• What are the market opportunities and threats faced by the vendors in the insurance IT spending market in the US?
• Trending factors influencing the market shares of the US region.
• What are the key outcomes of the five forces analysis of the insurance IT spending market in the US?

Technavio also offers customization on reports based on specific client requirement.

Related reports

• Insurance IT Spending Market in India 2015-2019