Insurance Software Deal Trends 2001-2003 - Life/Health Edition

by Craig Weber, February 10, 2004

Abstract

Boston, MA, USA February 10, 2004

Insurance Software Deal Trends 2001-2003 Reports Published by Celent

Celent’s new reports present unique analysis of more than 860 insurance software deals between 2001 and 2003.

Insurance software deals are typically announced, published in the trade press, posted on vendor Web sites, and quickly forgotten by industry observers. No single source consolidates records of insurance software technology deals, leaving analysts, marketers, and technology buyers to attempt to reconstruct trends from diverse sources, individual conversations, and hazy memories. Celent’s new reports, Insurance Software Deal Trends, 2001-2003, present analysis of real data about deal flow in insurance between 2001 and the first half of 2003.

The reports are based on an analysis of 860 insurance software deals—454 deals involving life/health insurers, and 406 deals involving property/casualty insurers. Data about the deals were collected from public sources and from inquiries to several hundred software vendors.

"Although it is not comprehensive, we believe this is the most extensive data set that has ever been aggregated about insurers’ software buying patterns,"

said Matthew Josefowicz, manager of Celent’s insurance group and co-author of the reports.

"The data in these reports provide quantitative metrics to support observed trends in the use of vendor-provided software in the industry," adds co-author

Craig Weber, a senior analyst in Celent’s insurance group and co-author, with Josefowicz, of the reports.

Among the reports’ key findings:

  • The market in most categories is highly fragmented. There are no dominant vendors in most deal categories for new deals.
  • Medium-sized and small insurers were active buyers of software solutions. Small property/casualty insurers (those with premiums under US$100 million) accounted for a third of purchases in the sample.
  • Small and medium-sized life/health insurers invested actively in policy administration systems, agent extranets, and other forward-looking projects.
  • Claims and claims litigation management were the most active segments for large property/casualty insurers.
  • Only large life insurers were active in EIM/compensation management and online self-service

The reports break down deals into four meta-categories: core processing, distribution, infrastructure, and document/content management. Within each meta-category, deals are analyzed by specific business functions, carrier size, and the date the deal closed. Where possible, leading vendors within each category in the sample are also identified.

Each report contains more than 15 figures analyzing the data set. Tables of contents for the

Property/ Casualty edition and Life/Health edition are available online.

of Celent Communications' Property/Casualty Insurance and Life/Health Insurance research services can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.

        

Send mail to info@celent.com with questions or comments about this Web site.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

Boston, MA, USA February 10, 2004

Insurance Software Deal  Trends Life/Health Edition

Return to report Abstract

 

EXECUTIVE SUMMARY 3
INTRODUCTION 5
ABOUT THIS STUDY 6
OVERVIEW 12
LIFE/HEALTH RESULTS 16
DISTRIBUTION 18
CORE PROCESSING 22
DOCUMENT/CONTENT MANAGEMENT 25
INFRASTRUCTURE 27
CONCLUSIONS 30
APPENDIX 1: VENDORS INCLUDED IN THIS REPORT 31
OBJECTIVITY & METHODOLOGY 35

Sign in to download reports and access personalized information