This market research report presents a detailed segmentation of the insurance IT spending market in the US by technology (IT services, hardware, and software) and by industries (L&H and P&C). The major players in this market are Accenture, CSC, Fiserv, Guidewire, and Oracle.
The market research analysts at Technavio estimate the Insurance IT spending market in the US to grow at CAGR over 3% between 2016 and 2020. The deployment of cost-effective IT solutions, such as cloud computing, to digitize the insurance sector is the primary driver for the market. Digitization enables firms to manage customer grievances through superior online after-sales service solutions. At present, the hardware spending segment in the US dominates the insurance IT spending market by accounting for over 3% of the overall market value. Increased investments in information and communications technology (ICT) and the rise in the number of smart and connected devices amongst customers are some of the factors that will contribute to the growth of the market during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of IT spending by insurance segments by industry sector.
“The adoption of big data and analytics solutions by insurance firms in an attempt to gain meaningful insights is an upcoming trend in the market. These solutions enable insurance firms to carry out risks in a better way and help in compliance management. The constantly growing volume, variety, and velocity of online data is encouraging more vendors to implement big data and analytics solutions in their firms,” says Amit Sharma, Lead Analyst, ICT, Technavio Research.
The life and health (L&H) sector accounted for the majority share of IT spending by insurance in 2015 with a market share of over 56%. Firms offering health insurance policies invest in digital technologies such as mhealth technologies, big data, and analytics solutions to enable omni-channel communication. Companies offering L&H insurance are also investing greatly in big data, mobile app, and virtual kiosk systems for faster interaction with its policyholders. For instance, MetLife invests $300 million annually to increase operational efficiency and customer experience.
The key vendors in the market include Accenture, CSC, Fiserv, Guidewire, and Oracle. This market is highly competitive as many IT firms compete with similar kinds of IT solution offerings. The level of competition in this market is expected to intensify during the forecast period, especially in cloud computing services owing to the growing demand for next-generation IT solutions. The market is witnessing the entry of several start-up firms, which are offering specific IT solutions for insurance firms.
A more detailed analysis is available on the Technavio report, Insurance IT Spending Market in the US 2016-2020.
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