Technology Market Snapshot: Mid-Size Insurance Companies
Celent Communications predicts that mid-sized U.S. insurance companies will spend roughly US$1.1 billion on new technology projects over the next 3-5 years.
In a new report, entitled Technology Market Snapshot: Mid-Size Insurance Companies, Celent examines the composition and needs of this key market for insurance technology providers: the over 900 U.S. Insurers with direct written premiums between US$1 billion and US$100 million.
According to Matthew Josefowicz, Celent analyst and author of the report, "After sitting out the past couple of years of technological innovation, mid-size carriers are in need of the advantages that technology can bring to their struggle against the major carriers."
For mid-size insurers, the report notes, increasing distribution and making it more efficient trumps the other concerns like CRM and data-mining that pre-occupy larger companies. Accordingly, Celent predicts that new project spending by mid-size insurance companies will primarily be on Web-enabled policy administration systems and agent extranet systems.
Due to their greater numbers, the smaller P/C companies are expected to make up the largest single segment of this projected spending.
The report includes multiple charts and tables segmenting the mid-size insurer market by company size, product line, and geographical location. It also includes a brief summary of the offerings of seventeen leading companies that offer products targeted at mid-sized insurance companies.