ReportID: IS&S35 |
Coverage: COUNTRY |
Category: Information Technology | Sub-Category: IT Software & Services |
Published in: March 2022 | US $1450 |
The information technology has a significant impact on the way insurance sector operates in the United States. The impact of IT has further increased with the development and introduction of advanced software packages for business operations and specific application areas. In addition, emerging advances in digital technology are raising customer expectations for greater innovations in service delivery model, thus, encouraging insurance companies to embrace the latest technology to revise traditional business models to the digital one.
The US insurance IT software and service market is bifurcated based on offering, service, and software. Based on offering, the market is bifurcated into service and software. The service segment constituted more than XX of the overall pie in 2021 and is projected to remain largest segment by the end of 2031. While, the software segment is bifurcated into enterprise infrastructure software, enterprise application software, and industry-specific software. Of these, the enterprise infrastructure software was the dominant sub-segment in the US insurance IT software and service market in 2021, followed by enterprise application software sub-segment.
Based on service, the US IT insurance software and service market has been segmented into business process support service and IT product support service. The business process support was the largest segment in 2021.
The insurance industry in the US has become more global spanning across various geographies and emerging markets. This poses major challenges such as communication and data management in real time among different branches and offices. To overcome such issues insurance companies are investing substantial amount on IT solutions and connected technologies. In addition, the insurance industry is characterized by a large number of internal and customer transactions, that needs to be stored and managed securely in real time. This requires enhanced data management and customer relationship management solutions, hence, increase the uptake of IT software and services in US insurance sector. However, high cost associated with upgrading traditional IT infrastructure is expected to impede the growth of the IT software and service market in the country over the forecast period.
Key IT software and service providers identified in the US insurance IT software and service market are Microsoft Corporation, VMWare Inc., Adobe Systems Inc., Fujitsu Ltd., Oracle Corporation, Accenture, CA Technologies Inc., Symantec Corporation, IBM Corporation, and BMC Software Inc. These players are focused towards enhancing existing product portfolio by introducing enhanced IT software and services.