Deal Trends and Predictions in the Life Insurance Policy Administration Market: 2016 North American Edition
During the past two years, life insurers continued their trend of buying new policy administration systems for new product lines including group and voluntary. Newer systems continued to see momentum in sales.
In a new report Deal Trends and Predictions in the Life Insurance Policy Administration Solutions Market: 2016 North American Edition, Celent analyzes deal activity for new policy administration systems in North America using data from 25 vendors selling 27 policy administration solutions to North American life insurers. The report estimates the future potential for new deals and upgrades through 2017.
The North American life insurance PAS market remains a competitive one served by the 25 vendors profiled in Celent’s North American Policy Administration Systems 2015: Life, Annuities, and Health Vendor View report. The profiled vendors reported an average of 26 deals per year.
The outlook for the North American policy administration system market is expected to remain flat over the next two years.
"While many insurers have already replaced legacy systems, there is a significant number which have not. Many of those are making a concerted effort to work with the systems they currently own while others will find the need to buy a new system for a new product line or to meet strategic goals,” says Karen Monks, an analyst with Celent’s Insurance practice and author of the report. “Some of the same business drivers which influence purchase decisions are partly driving the desire to maintain legacy systems, hence our flat estimates for new PAS sales.”
Data in this report was gathered as part of Celent’s report North American Policy Administration Systems 2015: Life, Health, and Annuities ABCD Vendor View. Twenty-five policy administration vendors completed detailed RFIs to be included in that report. The RFI collected information about functionality and technology. There were also several questions about client base and recent deals. It is this subset of the RFI that forms the basis for projections found in this report. These are validated through ongoing conversations Celent analysts have with both vendors and insurers.