Vendor software deals in the Asia-Pacific insurance market were primarily smaller insurers for end-to-end suite and other core processing functions.
This is the first year Celent has analyzed insurance software sales deal activity in Asia-Pacific. In the report Asia-Pacific Insurance Software Deal Trends 2014, Property & Casualty Edition, Celent analyzes deal data provided by software vendors active in insurance in Asia-Pacific. A close look at overall 2012 and 2013 deals shows that core processing was the most common deal category; distribution and infrastructure/financial each made up a small percentage of deals.
Core processing deals made up 90% of property/casualty deals during the analyzed period. The majority of sales were to smaller insurers looking for comprehensive functionality from end-to-end suites and other core processing solutions. Based on the information provided by vendors in the overall Asia-Pacific insurance software market, insurers are updating their core processing solutions to improve more than 15 functions.
The report breaks down deal activity by insurer size, type of deal, up to four broad metacategories (core processing, distribution, infrastructure and financial, and document/content management), and a number of subcategories. Based on vendor-provided data, the report also names leaders in the Celent Traction Index, an indicator of which companies are finding success in the Asia-Pacific insurance vertical.
“Insurers are feeling market pressures as a result of customers’ expectations and a competitive environment,” says Wenli Yuan, senior analyst with Celent’s Asian Financial Services Group and coauthor of the report. “Core systems replacement is necessary to pursue the business opportunities. Hence, core systems deal data has outplaced other IT investments in terms of both volume and size.”
“Asia-Pacific is a growing market for insurance software vendors,” says Karen Monks, analyst with Celent’s Insurance group and coauthor of the report. “Vendors who can offer strong core processing products with a wide breadth of functionality are gaining the most traction in the market.”
