According to DataCube the US Insurance IT Software and Service Market is Expected to Surpass US$ XX million Mark by the End of 2031.
US Insurance IT Software and Service Market Introduction
The latest advancements in connected technologies is reshaping insurance industry by forging digital business models in the country. Large insurance companies are focusing on entering into partnership with FinTech companies to transform service delivery model and minimize risk associated with data management. Also, adoption of social media analysis tools, real time communication architecture, cloud-based solutions and shift towards digital content are the major trends witnessed in the US insurance sector, propelling IT adoption among large insurance companies. End user organizations in insurance sector are increasingly inclined towards IT to formulate fact based product pricing, claim processing and risk management strategies.
Increasing deployment of application and infrastructure software to automate operations such as underwritings and claims, and managing customer database is fuelling growth of the IT software and service market in the US insurance industry. Further, growing focus of insurance companies to enhance confidential data security, streamlining workflow and boosting internal communication among front and back office process is expecting to increase uptake of advanced IT software and services in the country. Introduction of web portals and mobile-based apps by insurance companies to offer digital services to end users so as to enhance overall customer experience is creating favourable opportunities for vendors operating in the market. However, traditional distribution channels managed by brokers and agents is expected to impede adoption of digital technology.
The US Insurance IT software and service market can be bifurcated based on offering, service and software.
By offering, the US insurance IT software and service market has been bifurcated into software and service. Service was the largest segment in terms of revenue contribution and is expected to remain largest segment during the projection period between 2022 and 2031. This growth is mainly attributed to rising deployment of connected hardware.
By software, the US insurance IT software and service market sub-segmented into industry specific software, enterprise infrastructure software, and enterprise application software. Of these aforementioned sub-segments, enterprise infrastructure software captured over XX% of overall software segment revenue in 2022, followed by enterprise application software sub-segment.
The service segment is further sub-segmented into IT product support service and business process service. Among these, business process support was the largest revenue contributor sub-segment in 2022 and is anticipated to remain the dominant sub-segment throughout the forecast period. Growing shift of insurance companies towards cloud computing technology is giving rise to IT process outsourcing services to third party vendors.
US Insurance IT Software and Service Market Competitive Landscape
Key vendors operating in the US insurance IT software and service market are Fujitsu, Accenture, Microsoft Corporation, Oracle, VMWare, CA Technologies, Symantec, Adobe Systems, IBM Corporation, and BMC Software. Introduction of vertical and application specific IT solutions has become one of the major strategies followed by the major vendors in the market.