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Life Insurance Policy Administration Systems Market Size, Share and Trends 2025 to 2034

The global life insurance policy administration systems market size is calculated at USD 3.22 billion in 2025 and is forecasted to reach around USD 5.82 billion by 2034, accelerating at a CAGR of 6.82% from 2025 to 2034. The market sizing and forecasts are revenue-based (USD Million/Billion), with 2024 as the base year.

  • Last Updated : 31 Mar 2025
  • Report Code : 5811
  • Category : ICT

Life Insurance Policy Administration Systems Market Size and Forecast 2025 to 2034

The global life insurance policy administration systems market size accounted for USD 3.01 billion in 2024 and is predicted to increase from USD 3.22 billion in 2025 to approximately USD 5.82 billion by 2034, expanding at a CAGR of 6.82% from 2025 to 2034. The enhanced need to streamline business operations, optimize claims processing, and achieve regulatory compliance with business standards accelerates the expansion of the life insurance policy administration systems market. 

Life Insurance Policy Administration Systems Market Size 2025 to 2034

Life Insurance Policy Administration Systems Key Takeaways

  • North America dominated the life insurance policy administration systems market in 2024.
  • Asia Pacific is expected to grow rapidly during the forecast period.
  • Europe is considered to be a notably growing area in the upcoming period. 
  • By technology, the cloud-based segment led the market in 2024. 
  • By technology, the on-premise segment is anticipated to expand rapidly in the coming years.
  • By type, the individual life insurance segment contributed the highest market share in 2024. 
  • By type, the group life insurance segment is expected to grow rapidly during the forecast period. 
  • By application, the new business processing segment captured the biggest market share in 2024.
  • By application, the underwriting segment is expected to grow the fastest throughout the forecast period.
  • By deployment, the single-tenant segment generated the major market share in 2024.
  • By deployment, the multi-tenant segment is anticipated to be the fastest-growing in the coming years.

How is AI Revolutionizing the Life Insurance Policy Administration Systems? 

Artificial intelligence helps to streamline the claims processing workflows more efficiently. AI reduces the insurers’ time required for claims payment processing. AI helps in the analysis of claims forms, documents, and visual data such as video and images. AI can identify the risk factors and needs of individuals and AI algorithms help to create customizable coverage based on identified parameters. NLP-enabled virtual agents and chatbots can deliver superior customer service. AI-enabled predictive modelling and anomaly detection help in advanced fraud detection.  

Market Overview

The life insurance policy administration systems market is driven by its potential to enable life insurers to evolve and compete in an expanding digital insurance sector. These systems provide the full end-to-end life cycle management of individual life insurance, group life insurance, and pension products. The emerging digital requirements are fulfilled by a diverse range of products provided by the vendors through their strategic collaborations. The vendors are also trying to expand their capabilities by introducing alternative solutions. 

A vast array of business lines, including life, pension, and annuity, transforms the market globally. In November 2024, the Reinsurance Group of America (RGA) announced the launch of a cutting-edge, licensed, and third-party health insurance administration platform named Aspire in the United Arab Emirates (UAE).   

Life Insurance Policy Administration Systems Market Growth Factors

  • The data analytics platforms are enabling insurers to adopt new technologies, adjust to customer preferences, streamline business operations, and retrieve data for informed decision-making.
  • The wide utilization of these software platforms by insurance companies is enabling the efficient management of all aspects of insurance policies. 
  • These systems are allowing the automation of various business processes. 
  • The integration of automation into life insurance businesses improves efficiency and reduces manual intervention. 
  • The core processes used by these systems, such as quoting, underwriting, issuance, endorsement, billing, claims processing, etc., help with precise automation.  

Market Scope

Report Coverage Details
Market Size by 2034 USD 5.82 Billion
Market Size in 2025 USD 3.22 Billion
Market Size in 2024 USD 3.01 Billion
Market Growth Rate from 2025 to 2034 CAGR of 6.82%
Dominated Region North America
Fastest Growing Market Asia Pacific
Base Year 2024
Forecast Period 2025 to 2034
Segments Covered Technology, Type, Application, Deployment, and Regions
Regions Covered North America, Europe, Asia-Pacific, Latin America and Middle East & Africa

Market Dynamics

Drivers

Improved Customer Experience and Enhanced Self-Sufficiency 

The insurance core systems are introducing new products and services to the market with the help of policy issuance robotic process automation (RPA). The various implementation models, such as Software as a Service (SaaS), Platform as a Service (PaaS), and self-hosted, offer flexibility of deployment. These systems also offer lower operational costs and higher efficiency. The use of different features such as smart rule editors, low-code rules configuration, no-code, and centralized databases empowers insurers with enhanced self-sufficiency. These systems provide customers with integrated self-service portals for clients and agents seamless data integrations, real-time data access, and document management capabilities.

Restraint

Lack of Risk Prediction Expertise and Knowledge

One of the major challenges for the life insurance policy administration systems market is finding the right software insurance development company. The extended time and extra budget consumed by these companies may create obstacles in moving forward towards growth. The insufficient knowledge of developers and managers about the critical processes and requirements may create big issues in business operations. A lack of expertise in dealing with risks associated with insurance software solutions can also create hurdles in operational tasks.

Opportunity

Data-Driven Decision-Making and Regulatory Compliance

The various features, such as SaaS backup options, security stamps, strict access controls, audit trails, and SOC 2 certification, ensure security and regulatory compliance. The insurers can mitigate risks and establish trust with customers and regulatory authorities by ensuring data protection and compliance with industry regulations. Several platforms for advanced analytics, fraud detection, claims prediction, underwriting risk modelling, and the performance reporting of agent/advisor are facilitating data-driven decision-making. The insurers are enabled to optimize product offerings, operational efficiency, and pricing strategies by analyzing data insights which helps them to drive their business growth and profitability.

Technology Insights 

The cloud-based segment dominated the life insurance policy administration systems market in 2024. The advantages of cloud-based technologies, such as scalability, flexibility, cost savings, advanced security, and data loss prevention, drive their notable growth in the market. They enable developers to drive development with quick deployments. The novel innovations supported by cloud computing allow the testing of new ideas and the design of new applications without relying on hardware.

The easy scale-up of resources and data storage by cloud computing helps to meet business demands and avoid investments in physical infrastructure. The payments are required for only the resources while choosing any cloud service model, which saves costs and allows teams to focus on more strategic work. 

The on-premise segment is expected to be the fastest-growing in the life insurance policy administration systems market during the forecast period. The easy data accessibility to users without relying on internet connections is possible due to on-premise servers. The internal network of internet connections provided by on-premise servers raises the business productivity.

The reduced need for cloud accessibility allows for saving the internet costs. The increased preference for on-premise technologies by several companies that handle sensitive data drives the growth of the on-premise segment. The enhanced data security within the internal network raises the significance of on-premise servers.   

Type Insights

The individual life insurance segment dominated the life insurance policy administration systems market in 2024. The enhanced portability, irrespective of job change or retirement period, drives the importance of the individual life insurance segment. The guaranteed ownership obtained through the premium payments boosts the trust of investors in the individual life insurance. The advantages of medically underwritten individual life insurance policies accelerate their acceptance among people. 

The less premium offers for healthy people as compared to unhealthy people are provided by medically underwritten policies. The availability of various plans, such as term insurance, universal life insurance, and whole life insurance, showcases the flexibility of choice and assurance of benefits.  

The group life insurance segment is anticipated to grow at the fastest rate in the life insurance policy administration systems market in the coming years. The income tax-free death benefits delivered by group life insurance foster the choices for these policies. The minimal or no medical underwriting favored by these premium policies drives their growth in the market. The flexibility of adding additional coverage for dependents accelerates the significance of group life insurance. The availability of additional coverage to set up plan limits, depending on the premium plan, drives the significance of these policies. The guaranteed premiums based on company experiences boost the acceptance of these premium plans by the global population.  

Application Insights

The new business processing segment dominated the life insurance policy administration systems market in 2024. The streamlined business operations, improved productivity, reduced costs, and increased efficiency by the business processing management drive a remarkable growth. The enhanced decision-making and expanded collaborations introduce a strong competitiveness in the market. An exclusive platform to identify bottlenecks and navigate complex processes offers diverse benefits to businesses. The potential of business processing in organizing and preserving institutional knowledge also fosters the growth of this segment. The reduced dependency on email-based processes raises the adoption of the new business processing.    

The underwriting segment is observed to grow at a significant rate in the life insurance policy administration systems market in the upcoming period. The cost savings related to traditional fundraising methods, such as equity and issuing debt, are due to the underwriting, which drives this segmental growth notably. The flexibility offered to companies to access a large pool of investors boosts the important role played by the underwriting. 

The availability of alternative forms of underwriting, such as joint-lead underwriting and co-manager underwriting, helps to deliver promising services worldwide. The accountability and reliability offered to the insurance companies and policyholders surge the preference for underwriting. The evaluation and management of risk in the insurance sector, guaranteed by underwriting, propels its expansive reach in the market.   

Deployment Insights

The single-tenant segment dominated the life insurance policy administration systems market in 2024. The enhanced data security by avoiding the risk of a data breach through single-tenant deployment drives an expanding segmental growth. The availability of customization, along with hardware and software options to customers, raises the demand for single-tenant cloud architecture. The portability associated with these solutions allows for migrating data from a single-tenant architecture. The lower risk is associated with mixing customer data or complex migration scripts due to data storage for a single customer. The delivery of the same infrastructure for each customer through the use of single-tenant architecture fosters significant growth.        

The multi-tenant segment is expected to grow notably in the life insurance policy administration systems market over the forecast period. The effective SaaS operations delivered through the multi-tenant deployment raise the demand for this cloud architecture. The easy deployment associated with these solutions allows one to reach various tools provided by the cloud service providers such as AWS. The expansive reach towards different tools allows for building the applications faster. The reduced costs of maintenance and management due to inexpensive applications uphold the market’s portfolio. The efficient resource usage by a multi-tenant environment uplifts this segmental growth.   

Regional Insights

North America dominated the life insurance policy administration systems market in 2024. According to ‘Celent’, a research and advisory firm in North America, the various vendors offering stand-alone new business and underwriting system solutions are Accenture, Agenium, Appian, Bestow, C2L BIZ Solutions, etc. Moreover, Sapiens received the Xcelent award for customer base and support for North America, while Accenture and Agenium received for breadth of functionality for North America in the year 2024. 

The leading players, such as Accenture and Agenium were also honored with an Xcelent award for advanced technology for North America. Furthermore, the Accenture Life Insurance & Annuity Platform (ALIP) enables the efficient processing related to claims, cash management, billing, fund management, transaction management, tax, regulatory, accounting, and contract management.

Insurance and Advisory Roles of the U.S. Associations

The U.S. Department of the Treasury and the Federal Insurance Office (FIO) play a vital role in monitoring all aspects of the insurance sector. They also ensure the accessibility to affordable and non-health insurance products for the underserved communities and consumers. They also represent the U.S. on important aspects of international insurance issues at the International Association of Insurance Supervisors. The 2025 insurance regulatory outlook introduced by Deloitte focuses on 4 major areas, which include managing data during threats and innovations, safeguarding and optimizing solutions, meeting customer-centric regulation, and dealing with climate change risks.  

  • In September 2024, F&G Annuities & Life, Inc. announced its strategic collaboration with Accenture to expand its technology platform capabilities, optimize the processing, and scale operations through the Accenture Life Insurance & Annuity Platform (ALIP).  

Asia Pacific is observed to be the fastest-growing region in the life insurance policy administration systems market during the forecast period. The Insurance Regulatory and Development Authority of India (IRDAI) plays a vital role in regulating the insurance business entities. The IRDAI also regulates other business intermediaries such as brokers, insurance surveyors, corporate agents, third-party administrators, etc. The orderly growth of the insurance sector in India is regulated, promoted, and ensured by the IRDAI by protecting the interests of policyholders. Furthermore, the Department of Financial Services, Ministry of Finance, and Government of India (DFS) have the right to improve the provisions of the Insurance Act. The DFS also plays a significant role in maintaining the rules and regulations of the insurance sector. 

Regulation of Insurance Companies in China

The National Administration of Financial Regulation (NAFR) contributes to regulating insurance companies and intermediaries in China, such as brokers, agents, loss adjustors, and their business operations. In China, the policyholder protection is funded by industry charges, and the amended rules regulate the protection of policyholders. The regulatory initiatives support the Chinese insurers and help to improve their capitalisation and quality growth. Moreover, the investment strategies and business expansion help to grow the insurance business in China. 

  • In August 2024, the State Council Information Office of China announced the invitation to the officials from the National Financial Regulatory Administration to promote the high-quality development. 

Europe is considered to be a significantly growing area in the life insurance policy administration systems market in the foreseeable future. The European Commission highlights the rules to allow the activities of insurance companies through the insurance regulation across the European Union (EU). This insurance regulation by the European Commission also ensures the protection of policyholders and their survival in hard times. The European citizens rely on insurance policies in their day-to-day lives to protect themselves from potential risks. The policyholders can ensure long-term welfare through accessing various kinds of insurance policies. The insurers can help to improve the regional economy by uplifting the financial markets.  

The National Action Plan of France for the Open Government Partnership

In France, the National Health Insurance Fund ensures the accessibility of government partnership (GP) to each chronic diseased patient. The leading institutions in France include the Ministry for Health and Prevention and the CNR Secretariat General. The presence of public and private sector stakeholders in healthcare, regional health agencies, social workers, medical social workers, etc., contributes significantly to the regional growth. Moreover, the consumer representative groups and citizen and patient advocacy organizations also contribute to the remarkable growth of the market. The various activities of the Ministry for Health and Prevention are supported by the National Councils for Refoundation in Healthcare. According to the action plan of France for 2023-2025, over 400 healthcare centres will open across France to improve healthcare access to citizens and promote cooperation between healthcare professionals.    

  • In October 2024, European Unicorn Alan announced its expansion to Canada and became the first health insurance company in Canada in almost 70 years.  

Life Insurance Policy Administration Systems Market Companies

Life Insurance Policy Administration Systems Market Companies

  • Majesco
  • Accenture Life Insurance Solutions Group 
  • Accenture Plc
  • Oracle
  • Insurity
  • EXL
  • Infosys
  • FAST Technology
  • Edlund
  • EIS Group Inc.
  • AgencySmart

Latest Announcements

  • In January 2025, Atsushi Egawa, CEO of Accenture, announced that Meiji Yasuda's initiatives for becoming the most accessible and industry-leading life insurer are innovative as they integrate manual roles with digital technologies.
  • In August 2024, Jason Wynne, the Global Vice President of the Finance, Risk, and Compliance Product Development of Oracle Financial Services, announced that Resolution Life Australasia found a solution to deliver an effective response to emerging business demands and comply with new accounting standards such as IFRS 17.

Recent Developments

  • In September 2024, the Life Insurance Corporation (LIC) announced a collaboration with tech giant Infosys for the development of a next-generation digital platform that will serve as the foundation of new high-importance business applications such as portals, digital branches, customer and sales super applications, etc.
  • In January 2025, Majesco announced the selection of Majesco Intelligent Claims for P&C by Celina Insurance Group to transform claim operations, improve productivity, optimize the business, and enhance customer experiences.

Segments Covered In the Market

By Technology

  • Cloud-Based 
  • On-Premise 
  • Hybrid

By Type

  • Individual Life Insurance 
  • Group Life Insurance

By Application

  • New Business Processing 
  • Underwriting 
  • Policy Administration 
  • Claims Management 
  • Billing and Accounting

By Deployment

  • Single-Tenant 
  • Multi-Tenant

By Region

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East and Africa

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Frequently Asked Questions

The global life insurance policy administration systems market size is expected to grow from USD 3.01 billion in 2024 to USD 5.82 billion by 2034.

The life insurance policy administration systems market is anticipated to grow at a CAGR of 6.82% between 2025 and 2034.

The major players operating in the life insurance policy administration systems market are Majesco, Accenture Life Insurance Solutions Group, Accenture Plc, Oracle, Insurity, EXL, Infosys, FAST Technology, Edlund, EIS Group Inc., AgencySmart, and Others.

The driving factors of the life insurance policy administration systems market are the enhanced need to streamline business operations, optimize claims processing, and achieve regulatory compliance with business standards accelerates the expansion of the life insurance policy administration systems market.

North America region will lead the global life insurance policy administration systems market during the forecast period 2025 to 2034.

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