North American Insurance Software Deal Trends, 2014 Property & Casualty Edition

by Karen Monks,  Michael Fitzgerald, July 10, 2014
Industry Trends
North America

Abstract

Insurance deal activity grows with continued investment in core systems.

In the report North American Insurance Software Deal Trends 2014, Property & Casualty Edition, Celent analyzes deal data provided by software vendors active in insurance in North America. A close look at overall 2012 and 2013 deals that fall into each metacategory and subcategory shows an increase in insurance software purchase. This year’s report shows strong sales in 2012 and 2013. Deals in 2013 grew compared to 2012, and a like-on-like comparison to the last two years’ results shows that most vendors saw double-digit increases in deal volumes.

The report breaks down deal activity by carrier size, type of deal, four broad metacategories (core processing, distribution, infrastructure and financial, and document/content management), and a number of subcategories. Data from previous Deal Trends reports are used to look at longer-term trends, and leading vendors for each metacategory are identified.

Based on vendor-provided data, the report also names leaders in the Celent Traction Index, which is an indicator of which companies are finding success in the insurance vertical.

“Increased investment in core systems was clearly reflected in the deal data,” says Mike Fitzgerald, Senior Analyst with Celent’s Insurance group and coauthor of the report. “This activity reflects the priority that insurers are placing on improving underwriting, claims, and billing capabilities.”

“Deal volume increased 44%,” says Karen Monks, Analyst with Celent’s Insurance group and coauthor of the report. “These veteran vendors from our past reports have been effectively selling new products to their existing clients and making progress in selling to new logos.”

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 operating unit 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

Executive Summary

 

All Deals

 

Property & Casualty Deals

 

Conclusions

Introduction

 

Methodology

 

Scope

 

Limitations

 

Categories Used

 

Carrier Tiers

Overview

 

Deals by Subcategory

 

Deals by Carrier Size

 

Life/Annuity, Health, and Property & Casualty

 

Deals by Customer Relationship Type

 

Deals by Relative Deal Size

 

Deployment Methods

Measures of Insurance Traction

 

Traction Leaders

An Improving Market — For Many Vendors

Property & Casualty Results

 

By Metacategory and Quarter

 

By Size and Metacategory

Property & Casualty Metacategory Leaders

 

Distribution

 

Document/Content Management

 

Infrastructure and Financial

 

Core Processing

Conclusions

Appendix: Vendors Included in This Report

Leveraging Celent’s Expertise

 

Support for Financial Institutions

 

Support for Vendors

Related Celent Research

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