North American Insurance Software Deal Trends, Life/Annuity/Health Edition
Insurance deal activity grows with increased investments in sales and distribution software.
In the report, North American Insurance Software Deal Trends 2013, Life/AnnuityHealth Edition, Celent analyzes deal data provided by software vendors active in insurance in North America. A close look at overall 2011 and 2012 deals that fall into each metacategory and subcategory shows that insurance carriers have continued with their sluggish purchases of software, but 2012 shows a glimmer of hope for a turnaround in the market. Deals for life/annuity/health insurance software in 2012 grew compared to 2011, and a like-on-like comparison to the last two years’ results shows that most vendors saw increases in deals since 2010 as well.
“Continued investment in core systems renewal was clearly reflected in the life/annuity/health deal data,” says Mike Fitzgerald, Senior Analyst with Celent’s Insurance Group and coauthor of the report. “Package software activity indicates that insurers are using specific applications such as rules engines and front-end solutions to surround legacy administration systems.”
“Distribution deals increased dramatically in life, and account for 27% of all deals, up from 15% in our last report,” says Karen Monks, Analyst with Celent’s Insurance Group and coauthor of the report. “Our conversations with life insurers reveal that many are concentrating heavily on improving the sales and distribution process through automation; the deal data supports this trend.”
This report breaks down deal activity by carrier size, type of deal, four metacategories (core processing, distribution, infrastructure and financial, and document/content management), and a number of subcategories. Data from previous Deal Trends reports are used to look at longer-term trends, and leading vendors for each metacategory are identified.
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 insurance vertical.
The 26-page report contains 17 figures and four tables.