Asia-Pacific Insurance Software Deal Trends 2014: Life/Annuity and Health Edition

by Karen Monks,  Wenli Yuan, August 14, 2014
Industry Trends
Asia-Pacific

Abstract

Vendor software deals in the Asia-Pacific insurance market were primarily smaller insurers for product calculation and core processing functions.

This is the first year Celent has analyzed insurance software sales deal activity in Asia-Pacific. In the report Asia-Pacific Insurance Software Deal Trends 2014, Life/Annuity/Health Edition, Celent analyzes deal data provided by software vendors active in insurance in Asia-Pacific. A close look at overall 2012 and 2013 deals shows that core processing was the most common deal category; distribution and infrastructure/financial each made up a small percentage of deals.

Core processing deals made up 84% of life/annuity/health deals during the analyzed period. The majority of sales were to smaller insurers looking for functionality including product calculations, end-to-end suites, and underwriting, among others. Based on the information provided by vendors in the overall Asia-Pacific insurance software market, insurers are updating their core processing solutions to improve over 15 functions.

The report breaks down deal activity by insurer size, type of deal, up to four broad metacategories (core processing, distribution, infrastructure and financial, and document/content management), and a number of subcategories. Based on vendor-provided data, the report also names leaders in the Celent Traction Index, an indicator of which companies are finding success in the Asia-Pacific insurance vertical.

“Insurers are feeling market pressures as a result of customers’ expectations and a competitive environment,” says Wenli Yuan, senior analyst with Celent’s Asian Financial Services Group and coauthor of the report. “Core systems replacement is necessary to pursue the business opportunities. Hence, core systems deal data has outplaced other IT investments in terms of both volume and size.”

“Asia-Pacific is a growing market for insurance software vendors,” says Karen Monks, analyst with Celent’s Insurance group and coauthor of the report. “Vendors who can offer strong core processing products with a wide breadth of functionality are gaining the most traction in 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 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

Executive Summary

1

 

All Deals

1

 

Life/Annuity and Health Deals

1

 

Conclusions

1

Introduction

3

 

Goal

3

 

Methodology

3

 

Scope

4

 

Limitations

5

 

Categories Used

5

 

Insurer Tiers

8

Overview

9

 

Deals by Subcategory

10

 

Deals by Insurer Size

11

 

Life/Annuity, Health, and Property/Casualty

12

 

Deals by Customer Relationship Type

13

 

Deals by Relative Deal Size

13

 

Deployment Methods

14

Measures of Insurance Traction

16

 

Traction Leaders

16

Life/Annuity and Health Results

17

 

By Metacategory and Quarter

17

 

By Size and Metacategory

17

Life/Annuity and Health Metacategory Leaders

19

 

Core Processing

19

Conclusions

20

Appendix: Vendors Included in This Report

21

Leveraging Celent’s Expertise

22

 

Support for Financial Institutions

22

 

Support for Vendors

22

Related Celent Research

23

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