Commercial Insurance Software Market Overview
As per MRFR analysis, the Commercial Insurance Software Market Size was estimated at 6.94 (USD Billion) in 2022.
The Commercial Insurance Software Market is expected to grow from 7.8 (USD Billion) in 2023 to 22.2 (USD Billion) by 2032. The Commercial Insurance Software Market CAGR (growth rate) is expected to be around 12.32% during the forecast period (2024 - 2032).
Key Commercial Insurance Software Market Trends Highlighted
Commercial insurance software continues to revolutionize the industry, driven by technological advancements and evolving market demands. With the insurance sector becoming more competitive, insurers seek efficient and cost-effective solutions to enhance their offerings.
Key market drivers include the increasing adoption of digital technologies, the need for improved customer experience, and the demand for real-time data and analytics.
As insurers strive to optimize their operations, the implementation of commercial insurance software can streamline processes, reduce underwriting time, and improve risk assessment capabilities.
Opportunities for growth lie in the exploration of cloud-based solutions, the integration of artificial intelligence (AI) and machine learning (ML) for automated underwriting and fraud detection, and the development of customized software tailored to specific industry needs.
Insurers are increasingly recognizing the potential of these technologies to gain a competitive edge and drive innovation.
Figure1: Commercial Insurance Software Market, 2018 - 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Commercial Insurance Software Market Drivers
Rising Demand for Digital Insurance Solutions
The Commercial Insurance Software Market has been experiencing a surge in demand for digital insurance solutions as businesses increasingly recognize the benefits of automating their insurance operations.
Digital insurance software streamlines the entire insurance process, from policy issuance to claims management, resulting in improved efficiency, reduced costs, and enhanced customer satisfaction.
The growing adoption of cloud-based solutions, mobile applications, and data analytics tools is further fueling the demand for digital insurance software, enabling insurers to offer personalized and tailored insurance products and services to their customers.
This trend is expected to continue in the coming years, driven by the increasing penetration of digital technologies and the growing need for businesses to streamline their operations.
Increasing Regulatory Compliance Requirements
An additional considerable force that contributes to the expansion of the Commercial Insurance Software Market is stringent regulatory compliance requirements.
Modern insurance companies experience high pressure to comply with a wide range of complicated and frequently changing regulations, such as the General Data Protection Regulation and the Insurance Distribution Directive.
Commercial insurance programs allow insurance providers to automate the process of compliance with regulations.
In particular, this software comprises automated workflows, functionality for document management, and reporting tools, thanks to which insurers can facilitate all processes related to compliance and become well aware of all shifts in the regulatory environment.
Growing Adoption of InsurTech Solutions
Additionally, the growing adoption of InsurTech solutions is also driving the industry. InsurTech is a term that is used to describe the use of technology to improve the performance of the insurance industry.
Commercial insurance software is an integral part of the InsurTech industry as it allows insurance providers to use tools such as data analytics, artificial intelligence and machine learning to evaluate risks, automate underwriting and improve the claims process.
Therefore, adopting InsurTech solutions allows insurance providers to offer innovative products and services, cut costs and improve the customer experience.
Commercial Insurance Software Market Segment Insights
Commercial Insurance Software Market Deployment Type Insights
The Commercial Insurance Software Market is segmented by deployment type into cloud-based solutions and on-premises solutions.
The cloud-based solution segment is expected to dominate the market in the coming years due to its several advantages, such as lower upfront costs, scalability, and flexibility.
The on-premises solution segment is also expected to grow at a steady pace due to the preference of some organizations for greater control over their data and IT infrastructure.
In 2023, the cloud-based solution segment accounted for approximately 60% of the Commercial Insurance Software Market revenue.
This dominance is attributed to the increasing adoption of cloud-based solutions by businesses of all sizes. Cloud-based solutions offer several benefits over on-premises solutions, including lower upfront costs, scalability, and flexibility.
Cloud-based solutions can be deployed quickly and easily, and they can be scaled up or down to meet the changing needs of a business.
Additionally, cloud-based solutions are typically more affordable than on-premises solutions, as businesses do not need to invest in hardware or software. The on-premises solution segment is also expected to grow at a steady pace in the coming years.
On-premises solutions offer several advantages over cloud-based solutions, including greater control over data and IT infrastructure. On-premises solutions are also more secure than cloud-based solutions, as they are not accessible via the internet.
However, on-premises solutions are typically more expensive than cloud-based solutions, and they can be more difficult to deploy and manage. Overall, the Commercial Insurance Software Market is expected to grow at a significant rate in the coming years.
The increasing adoption of cloud-based solutions and the growing need for efficient and effective commercial insurance software are driving the growth of this market.
Figure2: Commercial Insurance Software Market, By Deployment Type, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Commercial Insurance Software Market Application Area Insights
The Commercial Insurance Software Market is segmented by application area into Property and Casualty Insurance, Life and Health Insurance, Workers' Compensation Insurance, Marine and Aviation Insurance, and Reinsurance.
Among these segments: Property and Casualty Insurance is expected to witness a significant increase in market share by 2032 due to the rising demand for risk management solutions for various commercial properties and assets, with a projected market valuation of USD 6.5 billion by 2032.
Life and Health Insurance is anticipated to experience substantial growth, driven by the increasing awareness of health and well-being among businesses, with a projected market valuation of USD 5.2 billion by 2032.
Workers' Compensation Insurance is poised to expand rapidly due to the growing emphasis on employee safety and regulatory compliance, with a projected market valuation of USD 3.8 billion by 2032. Marine and Aviation Insurance is expected to gain traction due to the increase in global trade and air travel, with a projected market valuation of USD 2.6 billion by 2032.
Reinsurance is projected to grow steadily as insurance companies seek to mitigate risks and spread liabilities, with a projected market valuation of USD 4.1 billion by 2032.
Commercial Insurance Software Market Business Size Insights
The Business Size segment of the Commercial Insurance Software Market is categorized into Small and Medium Businesses (SMBs) and Large Enterprises. SMBs are expected to account for a larger share of the market in 2023, with a revenue of USD 4.5 billion.
This is primarily due to the increasing adoption of cloud-based insurance software solutions by SMBs, which are cost-effective and easy to implement. Large enterprises are also expected to contribute significantly to the market growth, with a revenue of USD 3.3 billion in 2023.
This growth is driven by the need for comprehensive insurance software solutions that can manage complex insurance needs and streamline operations.
Commercial Insurance Software Market Pricing Model Insights
The Commercial Insurance Software Market is segmented based on the Pricing Model into Subscription-Based Pricing, Per-User Pricing, and Transaction-Based Pricing.
Among these, the Subscription-Based Pricing segment is projected to hold the largest market share during the forecast period.
The increasing adoption of cloud-based insurance software solutions is driving the growth of this segment. Per-user pricing is expected to witness significant growth over the forecast period due to the rising demand for flexible and cost-effective pricing models.
Transaction-Based Pricing is gaining traction as it allows insurers to charge based on the number of transactions processed, providing them with a more granular approach to pricing.
Commercial Insurance Software Market Functions Insights
The Functions segment of the Commercial Insurance Software Market is anticipated to exhibit robust growth over the forthcoming years. Policy Management is projected to dominate the segment, accounting for more than 30% of the market revenue in 2024.
This dominance can be attributed to the increasing demand for integrated solutions that streamline policy issuance, renewal, endorsements, and cancellations. Underwriting is another significant function, expected to witness notable growth due to the need for efficient risk assessment and pricing.
Claims Processing is also gaining traction, driven by the rising demand for automated claims handling systems that can reduce processing time and improve accuracy.
Billing and Invoicing are essential functions, maintaining a steady share of the market. Finally, Reporting and Analytics are gaining prominence as insurers seek to gain insights from data to make informed decisions.
Commercial Insurance Software Market Regional Insights
The Commercial Insurance Software Market is segmented by region into North America, Europe, APAC, South America, and MEA. North America is the largest region in the Commercial Insurance Software Market, accounting for a market share of around 40% in 2023.
The region is expected to continue to dominate the market during the forecast period, owing to the presence of a large number of insurance companies and brokers, as well as the increasing adoption of digital technologies.
Europe is the second-largest region in the Commercial Insurance Software Market, with a market share of around 30% in 2023.
The region is expected to witness significant growth during the forecast period, driven by the increasing demand for insurance software solutions from insurance companies and brokers.
APAC is the third-largest region in the Commercial Insurance Software Market, with a market share of around 20% in 2023.
The region is expected to grow at a rapid pace during the forecast period, owing to the increasing adoption of insurance software solutions by insurance companies and brokers. South America and MEA are expected to witness moderate growth during the forecast period.
Figure2: Commercial Insurance Software Market, By Regional, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Commercial Insurance Software Market Key Players and Competitive Insights
Many major players in the Commercial Insurance Software Market are always making efforts to develop new products to address the needs of the market. The major players in the Commercial Insurance Software Market are making larger investments in research and development to stay ahead of the competition.
The Commercial Insurance Software Market is expected to grow significantly in the next few years as the demand for such products rises in the insurance sector. The industry of Commercial Insurance Software Market is highly competitive, and a number of vendors are competing for their share of the industry.
Some of the major players operating in the Commercial Insurance Software Market are Sapiens International Corporation, Guidewire Software, Inc., Oracle Corporation, Majesco and Vertafore. The products and services offered by the vendors in the Commercial Insurance Software Market are used by many insurance companies of different sizes that offer different types of insurance.
The Commercial Insurance Software Market is expected to grow significantly in the next few years.
The leading company in the Commercial Insurance Software Market is Sapiens International Corporation.
The company offers a comprehensive range of solutions including software for insurance policy management, billing, claims, and underwriting. The products and services offered by Sapiens are used by many insurance companies of all sizes from across the globe.
The company has a track record of offering innovative solutions for the insurance sector and is known for its leadership in the insurance software market. The company provides the customers with the latest and most innovative insurance software solutions. The company is well positioned to continue to grow its share in the next few years.
A competitor company that is also present in the Commercial Insurance Software Market is Guidewire Software, Inc. The firm provides a cloud-based platform that is designed for insurance software.
Using Guidewire’s products helps insurance companies manage their business operations efficiently and leads to further growth.
Guidewire's platform is used by some of the world's largest insurance companies. The company has a track record of growth and achieving profits. The firm is well-positioned to grow its share in the industry in the next few years.
Key Companies in the Commercial Insurance Software Market Include
- Guidewire Software
- EIS Group
- Salesforce Financial Services
- PolicyMine Inc
- CoreLogic
- Vertafore
- Insurity
- Majesco
- CRMNEXT
- Duck Creek Technologies
- msg life ag
- Adjusters International
- Oracle NetSuite
- Applied Systems
- Sapiens International Corporation
Commercial Insurance Software Market Developments
The Commercial Insurance Software Market is anticipated to reach a valuation of 22.2 billion USD by 2032, exhibiting a CAGR of 12.32% between 2024-2032. Several recent developments are shaping the market dynamics:
Increased adoption of Cloud-based Solutions: Insurers are embracing cloud-based software to enhance data accessibility, reduce infrastructure costs, and foster collaboration.
Growing Demand for Automation: Automation tools streamline processes, reduce errors, and improve efficiency, driving demand for commercial insurance software.
Focus on Customer Experience: Software providers prioritize improving user experience through intuitive interfaces, real-time data analytics, and personalized services.
Regulatory Compliance: Stringent regulations require insurers to maintain accurate records and adhere to compliance standards, fostering the adoption of compliant software solutions.
Mergers and Acquisitions: Market consolidation through mergers and acquisitions strengthens the competitive landscape and accelerates innovation.
Expansion into Emerging Markets: Growing economies in Asia-Pacific and Latin America present significant opportunities for commercial insurance software vendors.
Commercial Insurance Software Market Segmentation Insights
Commercial Insurance Software Market Deployment Type Outlook
- Cloud-Based Solution
- On-Premises Solution
Commercial Insurance Software Market Application Area Outlook
- Property and Casualty Insurance
- Life and Health Insurance
- Workers' Compensation Insurance
- Marine and Aviation Insurance
- Reinsurance
Commercial Insurance Software Market Business Size Outlook
- Small and Medium Businesses (SMBs)
- Large Enterprises
Commercial Insurance Software Market Pricing Model Outlook
- Subscription-Based Pricing
- Per-User Pricing
- Transaction-Based Pricing
Commercial Insurance Software Market Functions Outlook
- Policy Management
- Underwriting
- Claims Processing
- Billing and Invoicing
- Reporting and Analytics
Commercial Insurance Software Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
6.94(USD Billion) |
| Market Size 2023 |
7.8(USD Billion) |
| Market Size 2032 |
22.2(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
12.32% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Guidewire Software, EIS Group, Salesforce Financial Services, PolicyMine Inc, CoreLogic, Vertafore, Insurity, Majesco, CRMNEXT, Duck Creek Technologies, msg life ag, Adjusters International, Oracle NetSuite, Applied Systems, Sapiens International Corporation |
| Segments Covered |
Deployment Type, Application Area, Business Size, Pricing Model, Functions, Regional |
| Key Market Opportunities |
Cloud-based deployment Automation Data Analytics Digital distribution Cyber insurance |
| Key Market Dynamics |
Increasing adoption of cloud-based platforms Rising demand for automation Advanced analytics capabilities Growing need for compliance Consolidation and partnerships in the industry |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Commercial Insurance Software Market is expected to reach an overall valuation of 7.8 billion USD by the end of 2023.
The market is projected to grow at a CAGR of 12.32% from 2024 to 2032.
North America is expected to hold the largest market share throughout the forecast period.
Key applications include policy management, claims management, underwriting, and billing.
Key competitors include Guidewire, Majesco, Sapiens, Vertafore, and Duck Creek Technologies.
Major factors driving growth include increasing demand for digital transformation, rising adoption of cloud-based solutions, and growing need for efficient claims processing.
Challenges include data security concerns, integration complexities, and regulatory compliance requirements.
The market is projected to reach an overall valuation of 22.2 billion USD by 2032.
Asia Pacific is expected to witness the highest growth rate during the forecast period.
Key trends include the adoption of artificial intelligence (AI), increasing use of data analytics, and growing demand for personalized insurance products.
