US Exchanges: A Marketplace Overview
The sale of insurance in the United States has followed a traditional agent model for generations. Recent advancements in technology, coupled with legislative and regulatory changes, are reshaping the marketplace. These outside forces, combined with a changing demographic of technologically literate consumers, are pushing insurers out of their comfort zone into new channels and new approaches to sales.
Never has this been more apparent than the introduction of insurance exchanges as defined by the Patient Protection and Affordable Care Act of 2010 (ACA). Health insurers have been forced to change their sales model, for both individual health insurance and insurance available as an employee benefit. These changes are beginning to affect life insurance companies as well.
To support the changing market, insurers must implement new technology in a timeframe that virtually requires them to use software available from vendors. The purpose of this report is to provide a market overview of key vendor participants as well as Celent’s observations on the market and direction as a whole.
“The market is changing at a pace never before seen, and exchanges are a huge part of the changing dynamic,” says Tom Scales, a research director with Celent’s Insurance practice and coauthor of the report. “Exchanges go well beyond just health insurance companies and are a component of transformation of the entire industry.”
Celent profiles seven vendors that cover a cross-section of the industry. The report is not intended to be an all-inclusive review of the industry, but a solid foundation for companies that are reviewing technology and considering their strategy.
This 56-page report contains 10 figures and 28 tables.