Insurance Software Deal Trends 2010: Life/Health/Annuity Edition

by Karen Monks,  Michael Fitzgerald, May 21, 2010
Product Trends/ Reviews
North America

Abstract

Insurance deal activity, although delayed, was very active during the economic downturn.

In a new report, Insurance Software Deal Trends 2010: Life/Health/Annuity Edition, Celent analyzes deal data provided by software vendors active in insurance in North America. A close look at 2008 and 2009 deals that fall into each metacategory and subcategory shows that insurers are still investing in solutions, despite the economic conditions.

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.

“Over the past 18 months, we have had numerous discussions with vendors and insurers about the impact of the financial crisis on decision-making,” says Mike Fitzgerald, Senior Analyst with Celent’s Insurance Group and coauthor of the report. “A consistent theme is that deals were continuing to get done, but that decision time frames were longer. We found that the 2010 deal trend data support these comments.”

“Insurers are sticking with vendors with whom they already have a relationship,” says Karen Monks, Analyst with Celent’s Insurance Group and coauthor of the report. “Given the financial environment, it seems that insurers are more risk-averse when choosing software and more inclined to stay with current suppliers. This has implications for vendors in that effective account management and cross-selling efforts are more important than ever.”

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

3

 

All Deals

3

 

Life/Health/Annuity Deals

4

 

Conclusions

4

Introduction

6

 

Methodology

6

 

Scope

7

 

Limitations

8

 

Categories Used

9

 

Carrier Tiers

12

Overview

13

 

Deals by Subcategory

14

 

Deals by Carrier Size

16

 

Life/Annuity, Health, and Property/Casualty

17

 

Customer Type

17

 

Deal Size

18

 

Measures of Insurance Traction

19

 

Traction Leaders

20

The Great Recession

22

 

Comparison with Previous Years

22

 

Like-on-Like Comparison: Deal Trends 2009 Vs. Deal Trends 2010

23

 

Like-on-Like Comparison: 2008 Deals Vs. 2009 Deals

23

Life/Health/Annuity Results

25

 

By Metacategory and Quarter

25

 

By Size and Metacategory

26

Metacategory Leaders

28

 

Distribution

28

 

Document/Content Management

29

 

Infrastructure and Financial

30

 

Core Processing

30

Concluding Observations

32

Appendix: Vendors Included in This Report

33

Leveraging Celent’s Expertise

35

 

Support for Financial Institutions

35

 

Support for Vendors

35

Related Celent Research

37

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