Insurance Rating Software Market By Deployment Mode (On-Premise, Cloud) , By Application (Life, Travel, Automobile, Home, Motercycle, Others) : Global Opportunity Analysis and Industry Forecast, 2024-2032
The insurance rating software market was valued at $590.2 million in 2023, and is projected to reach $1309.8 million 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.
Key FindingsDepending 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 AnalysisCompetitive 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.
Key Market SegmentsBy Deployment ModeOn-Premise
Cloud
By ApplicationLife
Travel
Automobile
Home
Motercycle
Others
By RegionNorth 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 PlayersACS
Vertafore
Applied Systems
EZLynx
InsuredHQ
ITC
HawkSoft
Sapiens International
Agency Matrix
Buckhill