Life Insurance Rating Systems Market Report 2025

The life insurance rating systems market size has grown strongly in recent years. It will grow from $3.29 billion in 2024 to $3.5 billion in 2025 at a compound annual growth rate (CAGR) of 8.2%. The growth in the historic period was driven by increasing consumer awareness of the importance of life insurance, greater adoption of digital technologies within the insurance industry, and a rising prevalence of chronic diseases and health risks.

The life insurance rating systems market size is expected to see strong growth in the next few years. It will grow to $4.74 billion in 2029 at a compound annual growth rate (CAGR) of 7.9%. In the forecast period, growth is expected to be fueled by rising demand for efficient and accurate rating systems, the need for faster and more precise underwriting, the introduction of innovative insurance products aimed at expanding market share, and increasing adoption of AI and machine learning technologies. Key trends anticipated include ongoing technological advancements, expanded use of AI and machine learning for improved risk assessment, continued digital transformation to drive market growth, and the emergence of no-code and low-code platforms for customizing rating systems.

The increasing adoption of cloud technology is expected to drive growth in the life insurance rating systems market. Cloud adoption involves migrating digital assets, applications, and IT resources from on-premises infrastructure to cloud-based platforms. This shift is largely motivated by cost efficiency, as cloud services reduce the need for significant upfront hardware investments and allow organizations to pay based on actual usage. Cloud-based systems enhance insurance rating processes by enabling real-time data processing, scalability, and advanced analytics, which result in more accurate and dynamic risk assessments. For example, in January 2025, AAG IT, a UK-based IT services company, reported that public cloud service revenue grew from $343 billion in 2021 to over $415 billion in 2022, with projections reaching $526 billion in 2023. Additionally, over 98% of organizations are now utilizing cloud services, including SaaS applications and fully cloud-native networks. This widespread cloud adoption is therefore fueling growth in the life insurance rating systems market.

Key players in life insurance rating systems market are advancing AI-powered underwriting tools to improve risk assessment accuracy, simplify policy issuance, and enhance customer experience. AI-powered life insurance underwriting tools use machine learning algorithms to analyze applicant risk profiles by examining medical and behavioral data, automating underwriting decisions with greater speed and precision. For instance, in June 2023, Insurance Software Automation, a US-based InsurTech firm, launched Best Plan Pro 2.0, an enhanced AI-driven underwriting tool that simplifies the underwriting process for agents. Using advanced linguistic and pattern recognition AI, it instantly compares multiple insurance products, providing agents with real-time quotes and personalized recommendations tailored to clients’ medical conditions and insurer requirements. The updated platform features an intuitive interface, improved data entry, and automation capabilities that help agents quickly pre-qualify clients for final expense, term life, or Medicare supplement insurance, leading to faster, more accurate recommendations and streamlined workflows.

In August 2023, AXA Life & Health Reinsurance Solutions, a Singapore-based reinsurance provider, partnered with Verisk to assist insurance companies in Egypt in automating health insurance underwriting based on customers’ declared pre-existing medical conditions. This collaboration aims to strengthen AXA’s underwriting capabilities by leveraging advanced data analytics for more precise health risk assessment, streamlined risk selection, and improved pricing strategies in life and health insurance. Verisk Analytics, based in the US, specializes in life insurance rating systems and strategic data analytics.

Major players in the life insurance rating systems market are Oracle Corporation, CGI Group Inc., LexisNexis Risk Solutions Inc., Milliman Inc., Guidewire Software Inc., Vertafore Inc., Applied Systems Inc., Majesco Limited, Sapiens International Corporation N.V., Duck Creek Technologies Inc., Insurity Inc., Aptitude Software Group plc, Capterra Inc., HawkSoft Inc., EZLynx a Solera Company, BriteCore, InsuredHQ Pty Ltd, Insurance Technologies Corporation (ITC), Buckhill Ltd, and TurboRater.

North America was the largest region in the life insurance rating systems market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in life insurance rating systems report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the life insurance rating systems market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Life insurance rating systems are structured methodologies employed by insurance providers to evaluate and categorize the risk levels of individuals applying for life insurance coverage. These systems leverage advanced algorithms and data analytics to analyze individual risk profiles and accurately determine premium rates for policyholders.

The main components of life insurance rating systems include software and services. The software comprises a set of tools that automate the calculation of risk, premiums, and underwriting decisions for life insurance policies. These solutions are deployed through various modes, such as on-premises and cloud-based platforms, and distributed via channels including direct sales, insurance brokers, online platforms, bancassurance, and independent agents. Primary end-users consist of insurance companies, brokers, agencies, and others.

The life insurance rating system market research report is one of a series of new reports that provides life insurance rating system market statistics, including the life insurance rating system industry global market size, regional shares, competitors with the life insurance rating system market share, detailed life insurance rating system market segments, market trends, and opportunities, and any further data you may need to thrive in the life insurance rating system industry. This life insurance rating system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The life insurance rating systems market consists of revenues earned by entities by providing services such as automated premium calculation, comparative quoting, multi-carrier integration, and product configuration. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.