Software as a Service in European Insurance

by Catherine Stagg-Macey, October 31, 2006

Abstract

London, United Kingdom 31 October 2006

Software as a Service in European Insurance: Market Data and Key Issues

Uptake of SaaS by insurers has been slow but is accelerating.

Software as service has been a topic of conversation for some years but the broad acceptance of the SaaS model by insurers is still to be decided. In a new report from Celent, Software as a Service in European Insurance, Celent estimates the insurance SaaS market in Europe is €13 million this year and will grow at a solid rate over the next five years to reach €53 million.

"The type of buyer of the SaaS model varies," says report author Catherine Stagg-Macey, "but one thing they have in common is the view that IT is a commodity." There are a number of reasons why SaaS can make commercial sense to the buyer including lower costs and reduced downtime."

The market is in its embryonic stages, and all indications are that it will expand rapidly in the years to come. Early adopters are likely to be small insurers or start-ups for whom the commercials of the SaaS model are overwhelmingly compelling. "While it's unlikely that the large insurers will adopt SaaS," says Stagg-Macey, 'there will be interest from nontraditional insurers such as banks."

The objective of this report is to provide some insight into this emerging market. Celent collected data on a number of deals from key vendors in this market. Alongside this primary data, and follow-up interviews, the report outlines trends for growth in this market. The report concludes with an overview of the supply side and some key considerations for both insurer and vendor."

The 19-page report contains six figures and two tables. A table of contents is available online.

 

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

London, United Kingdom 31 October 2006

Software as a Service in European Insurance: Market Data and Key Issues

Executive Summary 3
Introduction 4
SaaS in Insurance 6
Market Size and Growth Projections 9
Analysis of Deal Data 11
The Supply Market 14
Conclusion 16
Appendix 17
Objectivity and Methodology 18

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