Strategic Analysis of the Insurance Software Market 2025–2033 Mapping Automation Adoption and Core System Upgrades

Market Overview

The global insurance software market size was valued at USD 3.97 Billion in 2024. It is projected to grow to USD 6.51 Billion by 2033, exhibiting a CAGR of 5.38% during the forecast period of 2025-2033. Growth is driven by increasing automation needs, rising demand for mobile applications in insurance, and enhanced use of software for claims data collection. North America was the leading region in 2024, accounting for a 38.8% market share. 

Study Assumption Years

• Base Year: 2024
• Historical Years: 2019-2024
• Forecast Period: 2025-2033

Insurance Software Market Key Takeaways

• Current Market Size: USD 3.97 Billion in 2024
• CAGR: 5.38% (2025-2033)
• Forecast Period: 2025-2033
• North America dominated the market with 38.8% share in 2024.
• Insurers are adopting automation and cloud-based platforms to improve efficiency and reduce costs.
• Customer preference for digital, self-service options and regulatory compliance drive software adoption.
• AI and analytics investments are increasing to personalize services and detect fraud.
• Partnerships with insurtech firms promote agility among traditional insurance players.

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Market Growth Factors

The insurance software market is expanding due to several practical and competitive factors. Insurers face pressure to modernize outdated systems for improved operational efficiency. Automation and cloud-based platforms are pivotal in reducing manual efforts, streamlining claims processing, and lowering operational costs. Regulatory compliance requirements also necessitate adopting adaptive software systems that keep up with evolving laws. Moreover, cybersecurity features are becoming indispensable due to increasing data security concerns across the industry.

Customer expectations have shifted significantly toward digital and self-service options. Policyholders demand user-friendly portals and mobile applications to manage their insurance needs conveniently. This shift necessitates flexible and scalable insurance software systems that can support innovation while ensuring compliance. The growing emphasis on customer experience compels insurers to integrate AI and analytics for personalized service, fraud detection, and optimized underwriting processes.

Further, the rising demand for cloud-based Software-as-a-Service (SaaS) solutions especially in the US simplifies procurement and deployment. Through cloud marketplaces, insurance providers can reduce onboarding friction, update challenges, and integration complexities, enabling faster adoption and scalability. This trend is exemplified by DXC Technology's launch of its DXC Assure SaaS insurance solution package on the AWS Marketplace in May 2025, facilitating enhanced user convenience and operational efficiency.

Market Segmentation

Analysis by Type:

• Life Insurance
• Accident and Health Insurance
• Property and Casualty Insurance
• Others

Accident and health insurance held the largest market share in 2024 due to high demand for digital tools streamlining claims, underwriting, and policy management. With rising healthcare costs and increased personal coverage awareness, insurers require advanced software to manage high volumes of health claims, automate workflows, and ensure compliance with regulations. Investments in AI, data analytics, and mobile access are notable in this segment.

Analysis by Deployment Mode:

• Cloud-based
• On-premises

On-premises deployment led the market in 2024, favored by many large and traditional insurers prioritizing control, security, and customization. Handling sensitive customer data and strict regulatory adherence make on-premises attractive for direct infrastructure oversight. This mode supports tighter legacy system integration and remains preferred in regions with gradual digital transformation or stringent regulations.

Analysis by End User:

• Brokers
• Agencies
• Insurance Companies

Insurance companies led with approximately 63.6% market share in 2024 by adopting software to enhance efficiency, reduce costs, and improve customer experiences. They seek scalable, flexible platforms supporting policy administration, claims processing, fraud detection, and customer engagement while addressing regulatory and data management demands.

Regional Insights

North America dominated the insurance software market in 2024 with a 38.8% market share. The region benefits from advanced technological infrastructure, early digital solution adoption, and a mature insurance industry. The US accounted for 86.6% of North America's market share, driven by digital transformation, regulatory compliance, high customer expectations, and significant investments in AI, automation, and cloud computing. This positioning ensures North America remains at the forefront of insurance software innovation and implementation.

Recent Developments & News

• June 2025: InsureMO introduced Agentic AI, an AI-driven platform enhancing insurance operations with intelligent automation, real-time insights, NLP assistant, and AI messaging.
• May 2025: INTX Insurance Software expanded operations into North America, providing scalable P&C policy administration technology to carriers, reinsurers, and MGAs.
• April 2025: Sapiens International Corporation acquired Candela to diversify offerings and broaden reach in the Asia Pacific insurance software market.

Key Players

• Accenture Plc
• Acturis Ltd.
• Axxis Systems SA
• Buckhill Ltd.
• EIS Software Limited
• Guidewire Software Inc.
• Mitchell International Inc.
• Oracle Corporation
• Salesforce Inc.
• SAP SE
• Sapiens International Corporation
• Solartis Technology Services Pvt Ltd.
• Vertafore Inc (Roper Technologies Inc.)

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