The insurance rating software market was valued at $590.2 million in 2023, and is projected to reach $1.30 billion by 2032, growing at a CAGR of 9.1% from 2024 to 2032.
Insurance rating software refers to digital tools designed to streamline the process of determining insurance premiums. These solutions integrate data analytics, actuarial models, and policyholder information to calculate accurate rates for various insurance products, such as auto, health, property, and life insurance. They incorporate advanced algorithms, machine learning, and external data sources to ensure compliance with regulatory requirements and market competitiveness.
The growth of the global insurance rating software market is driven by surge in demand for rating software that can reduce manual effort, minimize errors, and enhance operational efficiency, as insurance companies are increasingly adopting automated solutions to streamline underwriting and policy management processes. In addition, diversity and complexity of insurance products, including variable policies and bundled packages, necessitate sophisticated software capable of handling intricate rating algorithms and customizations, thus augmenting the market growth. Moreover, increase in adoption of cloud-based solutions significantly contributes toward the market growth.
This is attributed to the fact that cloud-based insurance rating software offers scalability, flexibility, and cost-efficiency. It also allows for seamless integration with other insurance tools, boosting its popularity among insurers. As per the Fortinet’s survey of the percentage of workloads businesses run in the cloud in 2022, more than 94% of organizations with more than 1,000 employees have their maximum workloads in the cloud, reflecting its increasing importance in sectors like insurance. Furthermore, the expansion of the insurance industry in developing regions creates opportunities for insurers to implement modern rating solutions that cater to diverse customer needs and regulatory environments.
However, high initial investment required for deploying advanced insurance rating software, including hardware, licensing fees, and integration, acts as a significant barrier for small and medium-sized insurers. Moreover, increase in data privacy and security concerns leads to loss of trust and legal consequences, which limits the adoption among insurers wary of regulatory penalties?. On the contrary, innovations like AI, machine learning, and big data analytics are transforming the insurance industry. These technologies enhance the predictive capabilities and accuracy of rating software, which are expected to offer lucrative opportunities for the expansion of the global market during the forecast period.
The global insurance rating software market is segmented into deployment mode, application, and region. On the basis of deployment mode, it is bifurcated into on-premise and cloud. Depending on application, it is segregated into life, travel, automobile, home, motorcycle, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
On the basis of application, the automobile segment was the major shareholder in 2023, and is anticipated to continue the same trend throughout the forecast period.
Region wise, North America was the major revenue generator in 2023, and is expected to emerge as the most lucrative market for insurance rating software in the coming years.
Insurance rating software refers to digital tools designed to streamline the process of determining insurance premiums. These solutions integrate data analytics, actuarial models, and policyholder information to calculate accurate rates for various insurance products, such as auto, health, property, and life insurance. They incorporate advanced algorithms, machine learning, and external data sources to ensure compliance with regulatory requirements and market competitiveness.
The growth of the global insurance rating software market is driven by surge in demand for rating software that can reduce manual effort, minimize errors, and enhance operational efficiency, as insurance companies are increasingly adopting automated solutions to streamline underwriting and policy management processes. In addition, diversity and complexity of insurance products, including variable policies and bundled packages, necessitate sophisticated software capable of handling intricate rating algorithms and customizations, thus augmenting the market growth. Moreover, increase in adoption of cloud-based solutions significantly contributes toward the market growth.
This is attributed to the fact that cloud-based insurance rating software offers scalability, flexibility, and cost-efficiency. It also allows for seamless integration with other insurance tools, boosting its popularity among insurers. As per the Fortinet’s survey of the percentage of workloads businesses run in the cloud in 2022, more than 94% of organizations with more than 1,000 employees have their maximum workloads in the cloud, reflecting its increasing importance in sectors like insurance. Furthermore, the expansion of the insurance industry in developing regions creates opportunities for insurers to implement modern rating solutions that cater to diverse customer needs and regulatory environments.
However, high initial investment required for deploying advanced insurance rating software, including hardware, licensing fees, and integration, acts as a significant barrier for small and medium-sized insurers. Moreover, increase in data privacy and security concerns leads to loss of trust and legal consequences, which limits the adoption among insurers wary of regulatory penalties?. On the contrary, innovations like AI, machine learning, and big data analytics are transforming the insurance industry. These technologies enhance the predictive capabilities and accuracy of rating software, which are expected to offer lucrative opportunities for the expansion of the global market during the forecast period.
The global insurance rating software market is segmented into deployment mode, application, and region. On the basis of deployment mode, it is bifurcated into on-premise and cloud. Depending on application, it is segregated into life, travel, automobile, home, motorcycle, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key Findings
Depending on type, the cloud segment held the highest market share in 2023, and is likely to retain its dominance from 2024 to 2032.On the basis of application, the automobile segment was the major shareholder in 2023, and is anticipated to continue the same trend throughout the forecast period.
Region wise, North America was the major revenue generator in 2023, and is expected to emerge as the most lucrative market for insurance rating software in the coming years.
Competition Analysis
Competitive analysis and profiles of the major players in the global insurance rating software market include ACS, Vertafore, Applied Systems, EZLynx, InsuredHQ, ITC, HawkSoft, Sapiens International, and Agency Matrix, Buckhill. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships to strengthen their foothold in the competitive market.Additional benefits you will get with this purchase are:
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Key Market Segments
By Deployment Mode
- On-Premise
- Cloud
By Application
- Life
- Travel
- Automobile
- Home
- Motercycle
- Others
By Region
- North America
- U.S.
- Canada
- Europe
- France
- Germany
- Italy
- Spain
- UK
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- ACS
- Vertafore
- Applied Systems
- EZLynx
- InsuredHQ
- ITC
- HawkSoft
- Sapiens International
- Agency Matrix
- Buckhill
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET LANDSCAPE
CHAPTER 4: INSURANCE RATING SOFTWARE MARKET, BY DEPLOYMENT MODE
CHAPTER 5: INSURANCE RATING SOFTWARE MARKET, BY APPLICATION
CHAPTER 6: INSURANCE RATING SOFTWARE MARKET, BY REGION
CHAPTER 7: COMPETITIVE LANDSCAPE
CHAPTER 8: COMPANY PROFILES
LIST OF TABLES
LIST OF FIGURES
Companies Mentioned
- ACS
- Vertafore
- Applied Systems
- EZLynx
- InsuredHQ
- ITC
- HawkSoft
- Sapiens International
- Agency Matrix
- Buckhill
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 200 |
| Published | October 2024 |
| Forecast Period | 2023 - 2032 |
| Estimated Market Value ( USD | $ 590.2 million |
| Forecasted Market Value ( USD | $ 1300 million |
| Compound Annual Growth Rate | 9.1% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
