SaaS Activity in 2010 Insurance Software Deals
Every year, Celent conducts a survey of software providers which details the activity in the insurance automation market (http://www.celent.com/reports/north-american-insurance-software-deal-trends-2011-lifehealthannuity-editionand http://www.celent.com/reports/north-american-insurance-software-deal-trends-2011-propertycasualty-edition). The latest snapshot showed a 14% growth in SaaS across all categories. This increase was expected based on conversations we had last year with both insurers and vendors.It was good to get some numbers that defined the level of activity in this area.What was surprising was that billing was one of the leaders in the move to SaaS in terms of percentage of deals. Thirty percent of the reported insurance billing systems sold in 2010 were delivered through some type of hosted solution. This demonstrates both the desire of companies to upgrade their billing service and reduce the cost involved in delivering these new capabilities. Look for increased activity in this area in 2011.