Software as a Service in European Insurance
Software as a Service in European Insurance: Market Data and Key Issues
Uptake of SaaS by insurers has been slow but is accelerating.
Software as service has been a topic of conversation for some years but the broad acceptance of the SaaS model by insurers is still to be decided. In a new report from Celent, Software as a Service in European Insurance, Celent estimates the insurance SaaS market in Europe is €13 million this year and will grow at a solid rate over the next five years to reach €53 million.
"The type of buyer of the SaaS model varies," says report author Catherine Stagg-Macey, "but one thing they have in common is the view that IT is a commodity." There are a number of reasons why SaaS can make commercial sense to the buyer including lower costs and reduced downtime."
The market is in its embryonic stages, and all indications are that it will expand rapidly in the years to come. Early adopters are likely to be small insurers or start-ups for whom the commercials of the SaaS model are overwhelmingly compelling. "While it's unlikely that the large insurers will adopt SaaS," says Stagg-Macey, 'there will be interest from nontraditional insurers such as banks."
The objective of this report is to provide some insight into this emerging market. Celent collected data on a number of deals from key vendors in this market. Alongside this primary data, and follow-up interviews, the report outlines trends for growth in this market. The report concludes with an overview of the supply side and some key considerations for both insurer and vendor."
The 19-page report contains six figures and two tables. A table of contents is available online.