Deal Trends and Predictions in the Life Insurance Policy Administration Solutions Market: 2012 North American Edition
Celent sees a cautiously optimistic outlook for new policy administration deals in North America. New players and upgrades of older systems buoy the market.
New deal activity for established players of life, annuity, and pension administration systems in North America has declined since 2009 (down 12.8% since Celent published its 2009 ABCD Vendor View report). However, the entry of vendors for stand-alone systems has increased deal volume. The outlook for the North American policy administration system market is expected to be cautiously upbeat over the next three years, with a compound annual growth rate of 10.2%.
In a new report, Deal Trends and Predictions in the Life Insurance Policy Administration Solutions Market: 2012 North American Edition, Celent analyzes deal activity for new policy administration systems in North America using data from 16 vendor solutions, and considers the potential implications for new deals.
"The North American market is made up of many established players with large client bases. The age of some of these client systems means that revenue from upgrades will remain a large portion of the policy administration market over the next few years,” says Karen Monks, Analyst with Celent’s Insurance group and coauthor of the report.
“The industry is slowly breaking its bad habit of living with severe legacy system constraints,” says Craig Weber, Celent's CEO and coauthor of the report. “There is no mad dash to replace every legacy platform, but rather a thoughtful, measured approach by many carriers to refreshing their system portfolios.”
This report reviews market sizing, client implementations, and vendor positioning and explores some of the potential implications for the market up until 2014.
Trends and data discussed in this report reflect Celent’s experience of the market based on ongoing discussions with the industry, and vendor RFIs submitted as part of Celent’s 2009 and 2011 policy administration system reports for North America.