Insurance Policy Administration Systems Software Global Market Report 2025

The insurance policy administration systems software market size has grown rapidly in recent years. It will grow from $3.2 billion in 2024 to $3.6 billion in 2025 at a compound annual growth rate (CAGR) of 12.5%. The growth during the historic period can be attributed to rising regulatory compliance requirements, increasing need for legacy system modernization, growing insurance industry digitization, rising demand for operational efficiency among insurers, and increasing pressure on cost optimization.

The insurance policy administration systems software market size is expected to see rapid growth in the next few years. It will grow to $5.69 billion in 2029 at a compound annual growth rate (CAGR) of 12.2%. The growth during the forecast period can be attributed to increasing insurance penetration in emerging markets, rising demand for policy lifecycle automation, growing focus on customer experience and personalized policies, and increasing collaboration between insurers and insurtech providers. Key trends in the forecast period include technological advancements in artificial intelligence and machine learning, developments in blockchain and distributed ledger integration, rising investment in research and development of modular policy platforms, innovation in mobile-first and self-service portals, and development of low-code or no-code deployment.

The rising digitalization is expected to drive the growth of the insurance policy administration systems software market in the coming years. Digitalization refers to the adoption of digital technologies and platforms to streamline operations, enhance customer engagement, and improve service delivery across insurance functions. The growth of digitalization in the insurance sector is driven by the increasing preference for online policy management and claims processing, as consumers seek faster, more convenient, and paperless ways to manage their insurance needs. Digitalization supports insurance policy administration systems software by enabling automated, paperless workflows and real-time data processing. It improves accuracy, speeds up policy management, and enhances customer engagement through seamless digital interactions. For example, in June 2025, Guidewire Software Inc., a US-based insurtech company, reported that the proportion of customers using AI tools for insurance at least once a week increased from 21% in 2024 to 33% in 2025. Therefore, the rising digitalization is fueling the growth of the insurance policy administration systems software market.

Key companies in the insurance policy administration systems software market are focusing on developing technologically advanced solutions, such as artificial intelligence-powered SaaS solutions, to automate operations, improve efficiency, and enhance customer experience. Artificial intelligence-powered SaaS solutions are cloud-based applications that use AI technologies such as machine learning, natural language processing, and predictive analytics to automate tasks, analyze data, and optimize decision-making in real time. For instance, in July 2025, DXC Technology Company, a US-based provider of business modernization, consulting, and cybersecurity services, launched DXC Assure Illustrations, an AI-powered SaaS solution for life insurance projections. It provides a smarter, faster, and more engaging approach to life insurance illustrations, transforming a key part of the customer journey, with pre-built integrations to DXC’s life systems that reduce reliance on costly third-party services. This accelerates production and enhances operational efficiency, making it ideal for insurers seeking streamlined, AI-driven policy illustration and projection capabilities.

In February 2023, Insurium Inc., a US-based provider of property and casualty insurance software, merged with Spear Technologies Inc. for an undisclosed amount. Through this merger, the combined entity aims to enhance digital insurance operations and accelerate the integration of low-code claims management and policy administration solutions. Spear Technologies Inc. is a US-based insurance technology company providing modern, cloud-based insurance policy administration systems software.

Major players in the insurance policy administration systems software market are Accenture plc, Oracle Corporation, Salesforce Company, SAP SE, Tata Consultancy Services, Cognizant Technology Solutions Corporation, Infosys Limited, DXC Technology Company, Concentrix Corporation, EXL Service Holdings, Inc., Pegasystems, Inc., Coforge Limited, Guidewire Software, Inc., TIA Technology A/S, Cytora Limited, Insurity Inc., EIS Group, Inc., Equisoft Inc., Keylane B.V., and Instanda Limited.

North America was the largest region in the insurance policy administration systems software market in 2024. The regions covered in insurance policy administration systems software report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the insurance policy administration systems software 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.

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

Insurance policy administration systems software is a digital platform that manages the complete lifecycle of insurance policies, from policy creation, underwriting, and issuance to renewals, endorsements, and cancellations. It automates and streamlines core administrative tasks, improves accuracy, ensures regulatory compliance, and enhances customer service by enabling insurers to efficiently manage policy data, track policyholder information, and adapt to changing market and regulatory requirements.

The key components of insurance policy administration systems software include software and services. Software refers to advanced analytical tools and platforms that allow insurers to collect, process, and analyze large volumes of data for risk assessment, pricing optimization, fraud detection, and customer experience enhancement. It is deployed through on-premise and cloud-based models and serves small, medium, and large enterprises. Key applications include life insurance, health insurance, automobile insurance, and home insurance, serving end-user industries such as insurance providers, insurance brokers, and third-party administrators.

The insurance policy administration systems software market includes revenues earned by entities through customer data management, regulatory compliance support, premium calculation, reinsurance management, document management, and reporting and analytics. 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.

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