Insurance Policy Administration Systems Software Market Report 2026

The insurance policy administration systems software market size has grown rapidly in recent years. It will grow from $3.6 billion in 2025 to $4.04 billion in 2026 at a compound annual growth rate (CAGR) of 12.3%. The growth in the historic period can be attributed to transition from legacy policy systems, increasing insurance product complexity, growth in digital insurance channels, rising demand for operational efficiency, early adoption of core insurance platforms.

The insurance policy administration systems software market size is expected to see rapid growth in the next few years. It will grow to $6.37 billion in 2030 at a compound annual growth rate (CAGR) of 12.1%. The growth in the forecast period can be attributed to increasing demand for real-time policy processing, expansion of usage-based insurance models, rising investments in cloud-native insurance systems, growing focus on customer experience personalization, increasing regulatory reporting requirements. Major trends in the forecast period include shift toward cloud-based policy administration platforms, increasing automation of underwriting and policy lifecycle tasks, growing integration with digital distribution channels, rising focus on regulatory compliance automation, expansion of api-driven system architectures.

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 companies operating 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, 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., Instanda Limited, Sapiens International Corporation N.V., Majesco Limited, OneShield Software Inc., Socotra Inc., Solartis Inc., FINEOS Corporation, Duck Creek Technologies Inc.

North America was the largest region in the insurance policy administration systems software market in 2025. The regions covered in the insurance policy administration systems software market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the insurance policy administration systems software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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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