What Fueled The Previous Growth In The Insurance Agency Software Market?
The insurance agency software market has seen considerable growth due to a variety of factors.
• There has been a swift expansion in the insurance agency software market in the previous years. The market is projected to swell from a size of $3.82 billion in 2024 to a significant $4.25 billion in 2025, showing a compound annual growth rate (CAGR) of 11.1%.
Notable contributors to the growth during the historic period include the digital revolution within the insurance sector, the upward trend in cloud technology adoption, the shifting focus towards microinsurance solutions, the burgeoning need for instantaneous data analytics, and a heightened emphasis on highly custoimed and personal solutions.
What Is The Expected Growth In The Insurance Agency Software Market Size Evolve over the Forecast Period?
The insurance agency software market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of insurance agency software is projected to undergo swift enlargement in the ensuing years, with an anticipated valuation of $6.43 billion in 2029, bolstered by a compound annual growth rate (CAGR) of 10.9%.
Multiple factors contributing to the growth during the forecast period include an increase in no-code and low-code platforms, a growing need for customer self-service, a surge in the utilization of API-driven platforms, modernization of legacy systems, and a transition towards paperless operations. Some notable trends to observe during the forecast include acceleration in Insurtech investment, advances in predictive analytics, improvements in chatbot integration, the assimilation of voice assistants, and a spike in the prevalence of usage-based insurance.
What Main Forces Are Fueling Expansion In The Insurance Agency Software Market?
The burgeoning incidence of cyberattacks is projected to drive the growth of the insurance agency software market. Cyberattacks, which essentially are malicious endeavors to interfere with, inflict damage on, or illicitly access computer systems, networks, or data, usually for financial, espionage, or destructive reasons. This surge in cyberattacks can be attributed to enhanced digitalization, increasing reliance on cloud-based services, the proliferation of IoT devices, advanced hacking tactics, profitable fiscal returns for cybercriminals, and the lack of sufficient cybersecurity defenses in numerous organizations. Insurance agency software bolsters cybersecurity by incorporating sophisticated risk evaluation, fraud identification, and regulatory compliance features, empowering agencies to safeguard sensitive client data and counter the escalating menace of cyberattacks. For instance, data from Check Point Software Technologies Ltd., a software company based in Israel, showed that the worldwide cyberattacks swelled by 30% year-over-year in July 2024, averaging 1,636 attacks per organization per week. Moreover, public extortion-linked ransomware episodes grew by 13%, touching approximately 1,200 incidents. As such, the escalating prevalence of cyberattacks is fueling the growth of the insurance agency software market.
What Are The Primary Segments In The Global Insurance Agency Software Market?
The insurance agency software market covered in this report is segmented –
1) By Type: Life Insurance, Auto Insurance, Accident And Health Insurance, Home Insurance, Property And Casualty Insurance, Travel Insurance, Other Types
2) By Deployment Type: Cloud Based, On-Premise
3) By Application: Claims Management, Commission Management, Contract Management, Document Management, Insurance Rating, Quote Management, Policy Management
4) By End User: Small Business, Medium-Sized Business, Large Business
Subsegments:
1) By Life Insurance: Term Life Insurance, Whole Life Insurance, Universal Life Insurance, Endowment Life Insurance
2) By Auto Insurance: Liability Insurance, Collision Insurance, Comprehensive Insurance, Personal Injury Protection (PIP)
3) By Accident and Health Insurance: Personal Accident Insurance, Critical Illness Insurance, Disability Insurance, Health Insurance
4) By Home Insurance: Homeowners Insurance, Renters Insurance, Condo Insurance, Landlord Insurance
5) By Property and Casualty Insurance: Commercial Property Insurance, General Liability Insurance, Workers' Compensation Insurance, Commercial Auto Insurance
6) By Travel Insurance: Trip Cancellation Insurance, Medical Travel Insurance, Baggage Loss Insurance, Emergency Evacuation Insurance
7) By Other Types: Pet Insurance, Agricultural Insurance, Marine Insurance, Aviation Insurance
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What New Trends Are Influencing The Insurance Agency Software Market?
Major companies operating in the insurance agency software market are focusing on developing innovative applications, such as embedded commercial insurance quoting applications, to streamline commercial insurance quoting by enabling real-time premium generation and enhancing digital customer engagement. An embedded commercial insurance quoting application is a digital tool integrated into an existing platform or service that allows businesses to receive real-time insurance quotes for their commercial needs. For instance, in October 2023, Applied Systems, Inc., a US-based insurance software solution company, launched Tarmika Insured, an embedded commercial insurance quoting application. This solution enables real-time premium generation by integrating a reduced application question set and direct carrier market connectivity, allowing agencies to offer instant, bindable quotes at the point of sale. Streamlining the quoting process through consumer-led and agent-led workflows enhances customer experience, improves agent productivity, and accelerates digital transformation in commercial insurance.
Who Are the Key Players In The Insurance Agency Software Market?
Major companies operating in the insurance agency software market are:
• Guidewire Software
• VERMEG Ltd Legal
• Sapiens International
• Vertafore Inc.
• Applied Systems Inc.
• Duck Creek Technologies
• Zywave Inc.
• Dyad Tech
• Bold Penguin
• EZLynx
• Insly LTD
• HawkSoft
• Insurance Technologies Corporation (ITC)
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• InsuredHQ Limited
• United Systems and Software Inc.
• AgencyBloc LLC
• Axxis Systems
• IVANS Insurance Solutions
• NowCerts
• Buckhill Ltd.
• Jenesis Software
What Is The Most Dominant Region In The Insurance Agency Software Market?
North America was the largest region in the insurance agency software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the insurance agency software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
