Deal Trends in Claims Systems: 2012 European Edition

by Catherine Stagg-Macey, November 14, 2012
Industry Trends
EMEA

Abstract

A small but important segment of the core systems market in Europe is choosing to implement claims as a stand-alone legacy modernization project. Growth in claims deals will be slow over the next five years, with a 5% CAGR, and these deals will increasingly go to only a handful of vendors.

In the report, Deal Trends in Claims Systems: 2012 European Edition, Celent analyses deal data gathered from European claims administration vendors. Deal data for 2012 is compared to data collected in 2010, and the report examines trends in deal values and the number of deals. The report also includes an analysis of vendor market share by vendor, as well as the current vendor acquisition rates.

There are signs of increased deal values over the next five years, so the growth of total deal value will be 8% CAGR by 2016. This growth is driven by several factors, including the maturity of the solutions and increasing success in these types of projects.

“Within the last five years, there have been more European-based vendors offering claims solutions that can be implemented with or without the associated policy administration system,” says Catherine Stagg-Macey, Senior Vice President with Celent’s Insurance Group and author of the report. “Given this trend, it is valuable for insurers to have insights into how this market was evolving.”

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 four years. Nineteen vendors, all of which are profiled in detail in the Celent report Claims Systems Vendors: European General Insurance 2012, are included in the deal analyses. The report concludes with advice for both insurers and vendors.

This 19-page report contains nine figures and two tables.

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 part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America (Boston)
Tylor Tourville
ttourville@celent.com
Tel.: +1 617 424 3284

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)208 870 7875

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81.3.3500.3023

Table of Contents

Executive Summary

1

Overview

2

 

Differences in Insurer Buying Behaviors: North America and Europe

2

 

A Relatively Flat Outlook

2

 

Report Methodology

2

 

Report Limitations

2

Market Size Estimates

4

 

Definition of Deal Sizes

4

 

Projecting Claims Deals

4

 

New Deals and Upgrades

6

 

Revenue Split

7

Client Implementations

8

 

Definition of Insurer Sizes

8

 

Implementations by Size of Insurer

8

 

Implementations by Geography

9

 

Implications

9

Vendor View

10

 

An Emerging Proposition

10

 

Vendor Presence

10

 

Geographic Focus

11

Conclusion

13

 

Advice for Vendors

13

 

Advice for Insurers

13

Leveraging Celent’s Expertise

14

 

Support for Financial Institutions

14

 

Support for Vendors

14

Related Celent Research

15

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