The Tier 1 Dilemma: Is There a Life/Annuity System for Us?
Insurers are back in the market for policy administration systems. The insurers’ systems are old and difficult to maintain, and nowhere is this more evident than in larger insurers.
In the report The Tier 1 Dilemma, Celent looks at the offerings in the vendor marketplace. Based on extensive research, including our vendor comparison reports, CIO surveys, and deal trends reports, we take a high-level look at the capabilities of the systems and categorize their value to a large company. The report discusses the largest insurers, but the material and concepts apply to insurers of all sizes.
The market is clearly ready to buy. The vendors are ready to sell. The issue is matching insurers’ needs to vendors’ capabilities. Considerable funds are available for vendor investment.
“Our research shows that insurers are back in the market for systems after backing away during the financial crisis,” says Tom Scales, Research Director with Celent’s Insurance group and author of the report. “This report focuses on the big open question: What would they buy?”
This report examines the size of the market, but also insurance carrier size. It reviews the key vendors and their capabilities. It concludes with a discussion of insurer needs and how they can be met in the current vendor environment.