Deal Trends in General Insurance Policy Administration Solutions
The general insurance policy administration solutions market is highly competitive. No single ven- dor more than 6% of the market.
A large number of vendors are chasing a limited number of deals. However, this does not appear to deter new capital from the market or foreign vendors expanding into Europe. Mergers and acquisitions continue in this sector, with a trend of consolidation. Roughly 20% of the vendor market in Europe changed ownership in the last four years. In a new report, Deal Trends in General Insurance Policy Administration Solutions, Celent looks at deals in the European vendor market and how they impact both the buy and sell sides.
“There is no 800-pound gorilla in this sector,” says Catherine Stagg-Macey, Senior Vice President with Celent’s Insurance group and author of the report. “The market is fragmented, with small players all chas- ing a limited number of deals. This increases the cost of sale for the vendors, and makes decision making more complicated for buyers.”
This report takes a look at the number of reported deals in the sector in the last two years and estimates deal trends for the next three years. It also discusses mergers and acquisitions over the last four years and projects where new interest and capital might come from in coming years. It finishes with advice for both insurers and vendors.
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].
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Table of Contents
Differences in Insurer Buying Behaviors
Cautious Upward Trend
Market Size Estimates
IT Spending by European Insurers
Definition of Deal Sizes
Projecting PAS Deals
Implementations by Size of Insurer
Projecting Deal Value
Small Players Fragment the Market
Size of Vendor Client Base Market
A Morphing Market
Reflecting on the Past
Next Phase of M&A
Advice for PAS Vendors
Advice for Insurers
Leveraging Celent’s Expertise
Support for Financial Institutions
Support for Vendors
Related Celent Research