NEEDHAM, MA, November 25, 2003�Generic software vendors used to push products and leave insurance customers with the task of determining how to derive business value from them. For vendors, the traditional business model is shifting away from customers buying products to customers buying services.
Today, insurers who are building a technology roadmap for the future prefer software vendors with insurance industry expertise and experience with the use of their products for insurance.
They also want to leverage existing technologies before installing new systems. Software vendors must be prepared to collaborate with other vendors and work with them toward the insurer�s desired end state � a reengineered IT infrastructure that operates more effectively than before. TowerGroup estimates that approximately 50% of insurance software vendors will derive more than 60% of their total market value from alliance-related activities over the next three to five years.
In TowerGroup�s new research titled, �Insurance Software Vendors: The Logic Is in the Delivery,� Cindy Saccocia, a senior analyst in the Insurance practice at TowerGroup, provides an overview of the state of insurance software vendors and the various delivery models that software vendors are using to distribute their products. Ms. Saccocia also outlines the expectations insurers have in regard to their vendor relationships.
About TowerGroup: TowerGroup�now celebrating its 10th year�is the leading research and consulting firm focused on the global financial services industry. A respected source for trusted information and advice, TowerGroup brings many of the world�s largest financial services, technology and professional services firms a deeper understanding of the business and technology issues impacting their organizations. Headquartered near Boston in Needham, Massachusetts, and with offices in New York, London, and Kuala Lumpur, TowerGroup serves a global client base.
Visit TowerGroup’s web site at www.towergroup.com for more information.