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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.
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.
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.
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 -
Other prominent vendors in the market include Andesa, Cognizant, EXL Service, FIS, Genpact, Majesco, Microsoft, Pegasystems, SAP, and StoneRiver.
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PART 01: Executive summary
PART 02: Scope of the report
PART 03: Market research methodology
PART 04: Introduction
PART 05: Market landscape
PART 06: Market segmentation by technology
PART 07: Market segmentation by industry sector
PART 08: Market drivers
PART 09: Impact of drivers
PART 10: Market challenges
PART 11: Impact of drivers and challenges
PART 12: Market trends
PART 13: Vendor landscape
PART 14: Key vendor analysis
PART 15: Appendix
PART 16: Explore Technavio
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