London, United Kingdom
December 12, 2005
European
Policy Administration Systems 2005: Life Insurance and Pension Vendors
Report Published by Celent
Celent projects total spending on policy
administration systems for European life insurance and pension vendors
will reach $383 million by 2010 and profiles the vendors competing for
market share in this growing market.
Competition in the Life and Pensions policy
administration system (PAS) space in Europe is fierce as a result of new
players entering the market. In the Celent report, European Policy
Administration Systems 2005: Life and Pension Vendors, Celent profiles
and compares 19 vendors, examines the adoption of new solutions, and
projects overall spending on PAS.
Several new trends have emerged, according to the
report. Over half of the systems reviewed in the report were developed
using modern technology, with Java solutions most popular. And systems are
now componentised, reflecting larger carriers’ use of component
replacement to mitigate the risk of a large-scale end-to-end PAS
replacement. There is also wide use of Web services and service-oriented
architecture as a result of the search for flexible solutions that address
modern-day problems.
But while new options are available, the
adoption of the new solutions in the last three years has been slow, with
single-digit sales resulting from low levels of spending on technology by
most carriers. However, Celent projects spending will increase in the next
two years when carriers of all sizes will have both the budget and the
willingness to address the challenge of legacy replacement. "Total
spending on policy administration systems will reach $383 million by 2010,
with the largest year on year increases in 2006 and 2007," says Catherine
Schmitt, senior analyst and author of the report.
The landscape may be challenging for vendors trying
to stake a claim in an expanding market, but the time is right for
carriers searching for new options. Buyers of PAS systems in Europe now
have a wide choice of fully functional, componentised, modern solutions
available. This report explores and compares the range of options
available to carriers.
The report also uses Celent’s new ABCD Vendor
View, which is a standard representation of a vendor marketplace designed
to show at a glance the relative positions of each vendor in four
categories: Advanced technology, Breadth of functionality, Customer
base, and Depth of client services. Unlike a simple
"four-quadrant" map, solutions in the upper right are not
necessarily the best solutions—in an area as complex and idiosyncratic
as policy administration, there is no one "best" for all cases.
Insurers should consider which factors in breadth, technology, experience,
and client service are most important to them, and use the profiles and
comparative tables in this report to generate their own short lists. Only
vendors that are fully profiled in the report are included in the ABCD
Vendor View.
The vendors with full profiles are ALICE
Software Service, Bravura Solutions, CGI, CSC, eBao Technology,
EDS-SOLCORP, Exaxe, Financial Information Technology, FINEOS, Mastek,
Percana, SunGard Sherwood, and Sapiens.
Vendors with limited profiles are SAP, Tata
Consultancy Services, and Unisys.
The 79-page report contains 4 figures and 75 tables.
A table of
contents is available online.
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