The Perils of Success: Rethinking the Online Insurance Landscape in Europe

by Nicolas Michellod, February 8, 2010
Industry Trends


Insurers of all kinds have considered or are considering strategies to sell more products online. Insurers need to understand the reasons why potential consumers are increasingly shopping online as well as the forces influencing the online insurance market.

In a new report, The Perils of Success: Rethinking the Maturing Online Insurance Landscape in Europe, Celent analyses online insurance adoption across Europe and defines the generic strategies undertaken by insurance companies to enter this market. The report provides key information for both IT vendors and insurers evaluating the viability of their investments.

“The power of aggregators in the market, and how much time it takes for them to reach a critical mass should be the main variables driving insurers’ investment prioritization into the online insurance business,” says Nicolas Michellod, Senior Analyst with Celent's Insurance group and author of the report. “Insurers should continuously analyse the market in which they are competing and evaluate whether the amount of time required for aggregators to gain importance is sufficient to get investment in front end capabilities to pay off.”

After a discussion of online adoption and insurer strategies, this report draws observations from the experience of the UK online insurance market to predict the future of online insurance and to elaborate on the potential consequences of insurers’ investment priorities. The final section of this report describes the evolution of insurers’ online insurance IT architecture from the early to mature stages of the market.

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

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Michele Pace
Tel: +1 212 345 1366

Europe (London)
Chris Williams
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Asia (Tokyo)
Yumi Nagaoka
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary


The State of Online Insurance


The Future of Online Insurance and Investment Priorities


Evolution of Online Insurance IT Architecture


Final Thoughts


Leveraging Celent’s Expertise


Related Celent Research


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