Insurance software deal flow continues to improve, as service expectations rise and vendor solutions are refined.
The results of Celent�s third annual deal trends study show that the trend of increasing software deals from previous years continues.
“We�re not surprised to see the dramatic uptick in activity,” says senior analyst Craig Weber, author of the latest Celent reports, Insurance Software Deal Trends: 2004-2005. “Our conversations with carriers and vendors suggest that the checkbooks are out, as long as solutions deliver real value.” Weber notes that the deal count for vendors included in the study was 80% higher for the fourth quarter of 2005 than it was for the fourth quarter of 2004.
The reports (available in property/casualty and life/health editions) examine 1,158 deals submitted by 68 vendors. The deals are analyzed by category, customer type, and other factors. Major findings detailed in the report include the following:
For all lines of business combined, the core processing metacategory accounted for 32% of the deals. In real numbers, the average of core systems deals per quarter rose from 43 in 2004 to 49 in 2005, suggesting a strengthening in the core systems market.
The document management metacategory also grew sharply, from an average of 36 deals per quarter in 2004 to 68 deals per quarter in 2005. Document management deals composed 36% of the total deals recorded, and they were the only category for which life/health carriers outpaced their property/ casualty peers.
Almost half of the deals recorded from 2004 to 2005 were for new product licenses delivered to new customers.
The report also provides a “Traction Index” that represents participating vendors� level of success in the insurance vertical. Based on their submitted deals and the types of customers represented, the top vendors on the Traction Index are: SunGard, ImageRight, Exstream, Fiserv, Fair Isaac, Computer Sciences Corporation, InSystems, Pegasystems, Document Sciences, and Insurity.
Celent’s service offering falls into two categories, consulting and research, each of which is dedicated to technology in the financial services industry. We help banks, brokerage firms and insurance companies use IT to enter new markets in the shortest possible timeframes. All of our services are geared towards facilitating better informed, faster decision making. For more information visit www.celent.com or contact [email protected].