Latin American Insurance Software Deal Trends, Life/Annuity/Health Edition
Vendor software deals in the emerging Latin American insurance market consisted primarily of smaller insurers with comprehensive administration suites.
This is the first year Celent has analyzed insurance software sales deal activity in Latin America. In the report, Latin American Insurance Software Deal Trends 2013, Life/Annuity/Health Edition, Celent analyzes deal data provided by software vendors active in insurance in Latin America. A close look at overall 2011 and 2012 deals shows that core processing was the most common deal category, while distribution made up a small percentage of deals.
End-to-end suite deals made up 90% of all deals during the analyzed period. This result is not unexpected because the majority of sales were to smaller insurers looking for comprehensive functionality within one vendor’s product offerings. Based on the information provided by vendors, insurers are using end-to-end suite products for over 20 different functions, including point of sale tools, data analytics, agency management system functionality, and finance and accounting tools, to name a few.
“Investment in core systems renewal is clearly reflected in the life and health deal data,” says Juan Mazzini, Senior Analyst with Celent’s Insurance Group and coauthor of the report. “Core systems are at the center of insurers’ strategies, because they need a solid foundation for the rest of their building blocks.”
“Latin America is an emerging market for insurance software vendors,” says Karen Monks, Analyst with Celent’s Insurance Group and coauthor of the report. “Vendors who can offer strong core processing products with a wide breadth of functionality are gaining the most traction in the market.”
This report breaks down deal activity by carrier size, deal type, four metacategories (core processing, distribution, infrastructure and financial, and document/content management), and a number of subcategories. Based on vendor-provided data, the report also names leaders in the Celent Traction Index, which is an indicator of which companies are finding success in the Latin American insurance vertical.
The 20-page report contains 12 figures and four tables.