Deal Trends and Projections in the Distribution Management Systems Market

2015 North American Market
by Karlyn Carnahan, September 8, 2015
Industry Trends
North America

Abstract

Celent believes that sales of insurance distribution management systems in North America will continue at a steady pace during mid-2014 to mid-2016.

In the report Deal Trends and Projections in the Distribution Management Systems Market: 2015 North American Edition, Celent analyzes deal activity for new distribution management systems in North America using data from 13 vendors offering 14 systems which reported their sales in two prior two-year periods. The report also estimates the new deals in the mid-2014 to mid-2016 period and the overall market size for distribution management solutions. This data is an estimate for all vendors selling primarily to the insurer market; it is not limited to vendors that have participated in both of the earlier Celent reports.

Deployed distribution management systems, as reported by vendors responding to Celent RFIs, are found predominantly, by count, among small and midsize insurers.

 

“Many carriers are focusing on improving their distribution practices as a means of growing their book,” says Karlyn Carnahan, a research director with Celent’s Insurance practice and author of the report. “Distribution management tools can help them manage the compliance aspects of distribution management, and more effectively stimulate production through targeted compensation tools and techniques.”

Celent also projects the dollar value of insurance distribution management system deals in each tier during 2014–2016. The estimates are based on the number of deals, the average first year license, and the average first year amount spent on other implementation costs (for implementation professional services, either with the distribution management system vendor or a systems integrator). 

This report contains 8 figures.

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

1

 

Key Research Questions

1

Introduction

2

 

Key Research Questions

2

 

Report Approach

2

 

Report Limitations

3

The North American Insurance Distribution Management Systems Market

4

 

Distribution Management Systems in Production by Size of Insurer

4

 

Established Vendor Market

4

 

Size of Vendor Client Base

5

Recent P&C Distribution Management Software Deals

7

P&C Distribution Management Market Size Estimates

9

 

Projecting Insurance Distribution Management System Deals

9

 

Projecting the Insurance Distribution Management System Market Size

10

Conclusion

11

 

Advice for Insurance Distribution Management Vendors

11

 

Advice for Insurers

11

Leveraging Celent’s Expertise

12

 

Support for Financial Institutions

12

 

Support for Vendors

12

Related Celent Research

13

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