Insurance Software is an $8 Billion Market
The size of the insurance software market is projected to exceed $8 billion this year, according to a new report from market research company IBIS.
Industry revenue has been growing at about a 0.4% annualized rate in the five years up to 2016, IBHS says. Over the next five years, however, that growth rate is projected to increase to 3.6%, meaning that by 2021, revenue will reach $9.8 billion.
IBIS categorizes all insurance software as "claims processing software." However, the company groups policy adminstration, claims processing, and billing management software under that umbrella. Among those groups, policy adminstration software accounts for 51.8% of total revenue. Claims is next, at 34.1%, and billing accounts for the last 17.1%.
Among customer groups, life and annuity insurers account for 46% of spending, according to IBIS. P&C is divided between commercial lines (32.5%), personal home and auto (16.3%), workers' compensation (2.8%) and all others (2.4%).
IBIS attributes growth in the sector to increased interest in:
- Cloud computing
- Data accessibility
"The shift will likely accelerate the adoption of new business models, such as software as a service," says IBISWorld Industry Analyst Jack Curran.