Insurance Technology M&A Deals: Who Will Win?

by Donald Light, January 15, 2015
Industry Trends
Global

Abstract

The insurance technology sector is seeing an increasing number of mergers, acquisitions, and strategic investments — driven by advantages for vendors (which can offer an extensive portfolio of solutions) and by insurers’ unending need for more data and more powerful analytic capabilities. This report includes an exclusive listing of the 30 noteworthy transactions over the past four years.

The past two years have seen an uptick in the number of noteworthy transactions.

“There is much more activity on the property/casualty side of the industry than the life/health side. Many of the transactions focus on claims processes and or claims data. Distribution, underwriting, and pricing are also well represented,” says Donald Light, a research director with Celent’s Insurance practice and author of the report. “Insurance technology mergers, acquisitions, and strategic investments will not abate in the foreseeable future. The interest of private equity firms in this sector and the performance of certain publicly traded insurance technology firms make it likely that ample capital will be available to finance transactions.”

This 24-page report has six tables and one chart.

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

Introduction

2

Mergers, Acquisitions, Investments, Strategic Buyers, and Financial Buyers

3

 

Scope of This Report

3

 

Definitions

3

Noteworthy Deals: Trends and Categories

6

How and Where Is Value Created?

11

Key Issues for Day One

14

 

Customers

14

 

Prospective Customers

15

 

The Target

16

 

Competitors

16

Key Issues for Year One

17

Conclusion

18

Leveraging Celent’s Expertise

19

 

Support for Financial Institutions

19

 

Support for Vendors

19

Related Celent Research

20

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