The size of the global life insurance policy administration system market is expected to grow from USD 8846 million by 2028 from USD 5019 million in 2023, growing at a CAGR of 12% from 2023 to 2028.
The Life Insurance Policy Administration System is a system that helps to manage the end-to-end lifecycle of the group life, individual policies, and pension products. It allows insurers to manage life and annuity insurance policies and helps organizations track their strategies and calculate costs. The Life Insurance Policy Administration System can be executed as part of an independent solution or integrated guarantee package. This system can even improve the flexibility and administration of various insurance policies. Further, this system can be implemented as a part of a standalone solution or an integrated insurance suite.
MARKET DRIVERS:
The active change in market conditions in the life insurance policy administration to grow and adapt quickly drives the market growth. The rise in policy management functions outsourcing and the need to be up to date in technology is fuelling the market. Moreover, the low price associated with the system is further forecasted to boost the global life insurance policy administration system market. The life insurance policy administration system saves the cost of setting up infrastructure and training people to handle tools are significant opportunities for the market. Besides, the system can easily collaborate with the existing system. These are the opportunities of the life insurance policy administration system market.
MARKET RESTRAINTS:
The growing competition for the life insurance policy administration system is restraining the market. The quick rise in product updates is hampering the market. Moreover, the lack of professionally skilled people to handle the system in developing areas is dragging the market down. The Life Insurance Policy Administration System saves the cost of setting up infrastructure and training people to handle tools are significant opportunities for the market. Besides, the system can easily collaborate with the existing system. These are the opportunities of the life insurance policy administration system market.
Impact of COVID-19 Impact on the global life insurance policy administration system market:
COVID has affected all sectors in a significant way. The World Health Organisation has announced the coronavirus as a pandemic. More than 11.1M were affected by the virus, and 157K were recovered. The lockdown has affected the Life Insurance Policy Administration System Market negatively. Due to restrictions on the movement and lockdown guidelines, the market has faced a slow growth rate. But with the unlock guidelines by the government, the demand for the market is surging. COVID-19 has caused insurers to restore macroeconomic possibilities and presumptions for existing market conditions and potential prolonged financial recession. The key players in the life insurance policy administration system market tried their best to sustain it.
REPORT COVERAGE:
REPORT METRIC |
DETAILS |
Market Size Available |
2022 to 2028 |
Base Year |
2022 |
Forecast Period |
2023 to 2028 |
Segments Analysed |
By Deployment Type, Component, Policy Administration, and Region |
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
Regions Analysed |
North America, Europe, APAC, Latin America, Middle East & Africa |
This research report on the global life insurance policy administration system market has been segmented and sub-segmented based on the deployment type, component, policy administration, and region.
Life Insurance Policy Administration System Market - By Deployment Type:
The SaaS segment's revenue contribution is expected to expand at a CAGR of 13.0% during the forecast period based on the deployment type. The segment is expected to retain its dominance during the forecast period. Wide usage of the segment is caused by growth in the handle option of cloud-based services, superior security, and developments.
Life Insurance Policy Administration System Market - By Component:
Based on components, the services segment accounted for the major share of the worldwide market in 2022 and is estimated to grow at a notable CAGR during the forecast period. The service segment is further divided into Managed Services and Professional Services. The Software segment is anticipated to gain higher market share and CAGR in the upcoming years. These are the factors that propel the Life Insurance Policy Administration System Market.
Life Insurance Policy Administration System Market - By Policy Administration:
Based on policy administration, the user experience segment's revenue contribution is expected to expand at a CAGR of 13.7% during the forecast period. Policy lifecycle is broadening, outsourcing policy administration functions, and fast changes in the market are some of the prime factors driving the market growth.
Life Insurance Policy Administration System Market - By Region:
Geographically, North America is projected to dominate the market growth with a huge share during the forecast period. Extensive acquisition of the life insurance policy administration systems to develop the effectiveness and destroy the concerns erupting because of multiple administration systems is mounting the market growth during the forecast period. Moreover, the appearance of a number of key players in the market is fuelling the market. The large contributors to the North American market were the United States and Canada. The presence of the latest technological systems and the number of skilled workers boost the market. Well-designed life insurance policies in North America are fueling the Life Insurance Policy Administration System Market.
Europe is the second-largest leading market with 15% of shares. UK and Germany are contributing majorly towards the life insurance policy administration system market growth. Enhancements in the flexibility and administration of various insurance schemes are responsible for the region’s market growth.
The life insurance policy administration system market in Asia-Pacific is believed to have quick growth. China and India are emerging nations in the market. The upsurge in the rising focus on economic management across the globe is escalating market growth. Existing artificial intelligence and the rising adoption of cloud-based solutions are likely to surge the growing market demand.
Latin America and the Middle East & Africa are projected to have constant growth in the upcoming years.
KEY MARKET PARTICIPANTS:
Some of the companies dominating the global life insurance policy administration system market profiled in this report are Infosys Limited, SAP SE, Capgemini SE, Concentrix Corporation, DXC Technology Company, Mphasis Wyde, Oracle Corporation, Accenture Plc, InsPro Technologies LLC, EXL Service Holdings, Inc., Sapiens International Corporation, Majesco and others.
FAQ's
The growth of the life insurance policy administration market is primarily driven by factors such as the increasing demand for digital insurance solutions, the growing need for process automation, and advancements in artificial intelligence and machine learning technologies.
Some of the key players in the life insurance policy administration market include Accenture, DXC Technology, Majesco, Oracle Corporation, and Sapiens International Corporation.
The life insurance policy administration market faces several challenges, including the complexity of legacy systems, data security concerns, and the need for skilled professionals to implement and maintain the software solutions.
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