Insurance Software Development - Growth

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Insurance Software Development Market

The insurance software development market is expected to grow at a rate of 2% between 2017 and 2022. Some areas of the market are expected to grow more rapidly than others. For example, the SaaS segment of the life insurance policy administration system market is expected to grow at a rate of 13% between 2018 and 2026. In 2018, the insurance applications market grew at rate of 9.4%, in which, insurance software vendors accounted for 44% of the market. A 2017 market report states that the insurance software market was expected to grow at a rate of 4.59% CAGR and between 2014 and 2019, the insurance claims processing software market in the U.S. grew at a rate of 7%. Key growth drivers in this market include increasing adoption of insurance in developing countries and increased spending on technology by insurance companies. It should further be noted here that the vast majority of information pertaining to insurance software development market growth is locked inside paywalled reports. Any publicly available insights uncovered that are related to this market and its growth has been provided below.

Recent Growth

  • As of 2018, insurance software vendors had a market share of 44% within the insurance applications market, globally. This market grew at a rate of 9.4% in 2018.
  • Between 2017 and 2020, the insurance software market was expected to grow at a rate of 4.59% based on a 2017 market report.
  • Between 2014 and 2019, the insurance claims processing software in the U.S. grew at a rate of 7%.

Projected Growth

  • The insurance software development market is expected to grow at a rate of 2% between 2017 and 2022.
  • The insurance applications market is expected to grow at a rate of 2.4% CAGR through 2023.
  • The global life insurance software market is expected to grow at a rate of 4.48% between 2018 and 2022.
  • The life insurance policy administration system market is expected to grow at a rate of 12% between 2018 and 2026. The SaaS segment of this market is expected to grow at a rate of 13%.
  • The total software engineering market is expected to grow at a rate of 11.72% globally between 2016 and 2022

Growth Drivers

  • Cloud developments are increasing in the insurance software development market.
  • Sales of cyber insurance is a key growth driver of the overall insurance software market as cyber threats are on the rise.
  • Increasing adoption of insurance in developing countries is also driving the global insurance software market.
  • North America and Europe have the largest shares of the life insurance policy administration system market, with Europe expected to experience the fasted growth with a CAGR of 15.5% between 2018-2026.
  • There has been an increase in the level of spending on technology in the insurance sector which is driving the growth of the insurance software market.
  • New challenges facing insurance companies as the market landscape changes in terms of finances, consumer demand, and new entrants are helping to drive the need for insurance software.
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