Insurance policy software market growth analysis globally
In what seems as promising stage for the insurance policy software market, market growth is expected to flourish at a rate of 38 percent or more. Market sales have increased due to increasing need to enhance customer experience and business capacity. Insurance is a business that provides coverage as a means of compensating losses, damages, injury, treatment or hardship.
The use of software’s has helped to reduce an organization’s cost of operation and also enhance its productivity. Insurance software’s have helped organizations to manage their day to day operations. A key factor to increasing demand is the continuous adoption of insurance software’s in developing regions of the world. In previous times, lack of proper awareness regarding insurance have plagued the sales of the insurance software’s. It seems the awareness is increasing in developing countries.
Experts predict that China and India, believed to be an emerging economy, will contribute to the market growth of the insurance software industry. Even in more advanced markets, insurers are migrating their new and existing policies to digital platforms.
Although, the insurance software market size is very fragile but it is touted to grow by $15 billion or more by the year 2022. In a recent market research report, the Americas have the largest market share of about 39 percent, followed by APAC (Asia-Pacific) and also the EMEA (Europe, Middle East and Africa).
Some details of the analysis are as follows:
- Life insurance Industry – This segment improved slightly in 2017 compared to 2016. In North America, The department of labour fiduciary rules affected the growth in US, resulting in fall in cost of insurance. Also, Life insurers have continued to reduce their dependence on guaranteed returns and have been increasingly shifting to protection products. In Europe, the cost of insurance are estimated to have declined in 2017 as most major markets declined mainly due to reduced appeal of insurance service in a low interest rate environment. In emerging markets, growth is expected to be high as China maintained its growth rate due to a rise in protection products.
- Non-Life insurance policy – In Europe, the cost of insurance in Europe increased due to stronger automobile growth in the UK, Germany, France and Spain despite continued slowness in Italy and overall commercial space. In north America, about 93 percent, which is a large chunk, of insurance was lost. This is due to major natural occurrence in the region such as hurricane, wildfires and earthquakes. Despite the natural occurrences, growth have been observed due to increased insurances for automobile. In Asia, growth is expected to be low due to increase in non-life insurance in Japan. Also, there were less occurrences of natural disasters but insurances for non life insurances increased.