Analyst firm Research and Markets recently released a study saying that demand in the insurance industry for software is expected to grow at a compounded annual growth rate of 4.59% from 2016 to 2020.
The company said in a statement that one major driver for market demand is the need to simplify processes, specifically insurance claims, which it describes as “tedious and requires repetitive work.”
“Insurance companies are looking for claims management solutions to help them identify bottlenecks and streamline the entire system,” the statement read.
However, adoption is continuously challenged by regulatory compliance issues, according to the report. “The complexities of the regulatory environment certainly pose significant challenges for financial services companies and insurance companies as regulators continue to have strict compliance and risk management standards,” the company further said in the statement.
The situation is further exacerbated by multiple regulatory layers at the state, local, federal, and international levels.
Currently, the report further noted, the global insurance software market is dominated by Microsoft, Oracle, Salesforce and SAP.
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