Latin American Insurance Software Deal Trends 2014, Life/Annuity/Health Edition
Vendor software deals in the emerging Latin America insurance market were primarily smaller insurers for comprehensive administration suites.
This is the second year Celent has analyzed insurance software sales deal activity in Latin America. In the report Latin American Insurance Software Deal Trends 2014, Life/Annuity/Health Edition, Celent analyzes deal data provided by software vendors active in insurance in Latin America. A close look at overall 2012 and 2013 deals shows that core processing was the most common deal category; document and content management is an area with activity in total alignment with the indications that, early this year, CIOs shared with Celent in the 2014 CIO Survey.
End-to-end suite deals made up 76% of all deals during the analyzed period. This result is not unexpected because the majority of sales were to smaller insurers looking for comprehensive product functionality within one vendor’s product offerings. Based on the information provided by vendors, insurers are using end-to-end suite products for more than 20 different functions including point of sale tools, data analytics, agency management system functionality, and finance and accounting tools, to name a few.
The report breaks down deal activity by carrier size, type of deal, up to four 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, which is an indicator of which companies are finding success in the Latin American insurance vertical.
“Investment in core systems update continues to be strong in the region,” says Juan Mazzini, a senior analyst with Celent’s Insurance group and coauthor of the report. “Other components are starting to compete for a slice of the pie as investment in digital enabling technologies increases”
“Latin America is an emerging market for insurance software vendors,” says Karen Monks, an 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.”
The 28-page report contains 11 figures and three tables.