The market for core system replacement heats up
over the next two years in both the US and Europe.
A number of factors have emerged, creating the
"perfect storm" of business drivers for significant growth in
policy admin system purchases. In a new report from Celent, A Global
View of Policy Administration Systems: The 2007 Overview, Celent puts
forward the trends in policy administration systems markets in Europe,
North America, and Asia.
Celent expects the market in both Europe and North
America to continue to grow over the next two years and that total
spending on policy administration solutions for the regions covered in
this report will peak at US$1.7 billion in 2009. As systems improve,
insurers’ appetites for those systems should continue to grow, while
prices should hold reasonably firm for vendors or even increase in the
case of China.
‘’The growth in worldwide demand for policy
administration systems in 2008 and beyond looks to be excellent,” notes Catherine
Stagg-Macey, senior analyst and one of the authors of the
report.
Chad Hersh,
senior analyst and co-author of the report, adds that ‘’the next five
years are likely to be some of the strongest yet for vendors, and should
yield tremendous benefits for insurers.’’
The 25 page report contains nine charts and three
tables. A table of contents is available
online.
