Life Insurance Rating Systems Market Report 2026

The life insurance rating systems market size has grown strongly in recent years. It will grow from $3.5 billion in 2025 to $3.78 billion in 2026 at a compound annual growth rate (CAGR) of 8%. The growth in the historic period can be attributed to increasing demand for accurate premium pricing, rising policy volumes across life insurance products, expansion of digital underwriting processes, growing reliance on actuarial modeling tools, increased availability of structured consumer data.

The life insurance rating systems market size is expected to see strong growth in the next few years. It will grow to $5.1 billion in 2030 at a compound annual growth rate (CAGR) of 7.8%. The growth in the forecast period can be attributed to increasing adoption of real-time risk analytics, rising investments in cloud-native insurance platforms, expansion of personalized premium pricing models, growing regulatory scrutiny on rating transparency, increasing use of alternative data sources. Major trends in the forecast period include increasing adoption of ai-driven risk assessment models, rising use of advanced actuarial analytics platforms, growing integration of cloud-based rating engines, expansion of automated underwriting systems, enhanced focus on predictive risk scoring.

The increasing adoption of cloud technology is expected to drive the growth of the life insurance rating systems market in the coming years. Cloud adoption involves shifting digital assets, services, applications, or IT resources from on-premises infrastructure to cloud-based environments. This growth is largely driven by cost efficiency, as cloud services remove the need for substantial upfront hardware investments and enable organizations to pay only for the resources they consume. Cloud adoption strengthens insurance rating systems by supporting real-time data processing, scalability, and advanced analytics, resulting in more accurate and dynamic risk assessments. For example, in April 2025, the American Bar Association, a US-based professional organization, reported that around 75% of attorneys used cloud computing for work-related activities, up from 69% in 2023 and approximately 70% in 2022. Consequently, the rising adoption of cloud technology is fueling the expansion of 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 companies operating in the life insurance rating systems market are Oracle Corporation, CGI Group Inc., LexisNexis Risk Solutions Inc., Milliman Inc., Vertafore Inc., Applied Systems Inc., Majesco Limited, Sapiens International Corporation N.V., Duck Creek Technologies, Insurity Inc., Earnix Ltd, Willis Towers Watson, SAP SE, IBM Corporation, Microsoft Corporation, Salesforce Inc., FINEOS Corporation, Akur8, OneShield Inc., Solartis Inc., Jarus Technologies, Cogitate Technology Solutions Inc., Valuemomentum Inc., Verisk Analytics, EXL Service Holdings Inc., SAS Institute Inc.

North America was the largest region in the life insurance rating systems market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the life insurance rating systems market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the life insurance rating systems market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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.