Deal Trends in Life, Pensions, & Annuities Policy Administration Solutions: 2012 EMEA Edition

by Jamie Macgregor,  Nicolas Michellod, February 9, 2012
Vendor Reviews
EMEA

Abstract

Celent predicts a relatively flat outlook for new insurance deals in EMEA until 2014, while insurers work through the impact of the financial crisis and deliver on Europe’s regulatory agenda. However, pockets of growth still exist for those willing to be bold and travel to find them.

New deal activity for life, annuity, and policy administration systems across Europe has been in decline since 2009, down 19% since Celent published its 2009 ABCD vendor report, while insurers consider the impact of the financial crisis on their business, reduce or postpone new investment, and prioritize regulatory change activity over everything else.

In a new report, Deal Trends in Life, Pensions & Annuities Policy Administration Solutions: 2012 EMEA Edition, Celent analyses deal activity for new policy administration systems across EMEA using data from 34 vendor solutions, and considers the potential implications for new deals up until 2016.

“The vendor market for policy administration systems is extremely crowded, with approximately 60 solutions being marketed actively across the region,” says Nicolas Michellod, Senior Analyst with Celent’s Insurance group and coauthor of the report. “The average market share based upon client implementations is just 2.7%, and the average number of clients per country is 2.9. Vendors trading at or below this level may find it difficult to maintain momentum in these tough regional conditions.”

“With fewer deal opportunities, competition is going to be fierce, and Celent expects to see some market rationalisation,” says Jamie Macgregor, Senior Analyst with Celent’s Insurance group and coauthor of the report. “However, opportunities still exist in emerging markets and markets undergoing significant structural reform. To succeed, vendors need to be willing to travel, have a tight control over their cost base, and a healthy R&D pipeline to prove their long-term relevance.”

This report reviews market sizing, client implementations, vendor positioning and explores some of the potential implications for the market up until 2016.

Trends and data discussed this report reflect Celent’s experience of the market based on ongoing discussions with the industry, and vendor RFIs submitted as part of Celent’s 2009 and 2011 Policy Administration System ABCD Reports for EMEA.

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

3

Overview

4

Market Size Estimates

6

Client Implementations

12

Vendor View

15

A More Competitive Market

23

Final Thoughts

25

Leveraging Celent’s Expertise

26

Related Celent Research

27

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