by Karen Monks, Michael Fitzgerald, May 23, 2011
In a new report, North American Insurance Software Deal Trends 2011, Property/Casualty Edition, Celent analyzes deal data provided by software vendors active in insurance in North America. A close look at 2009 and 2010 deals that fall into each metacategory and subcategory shows that insurers are still investing in solutions, but at a slower rate.
The report breaks down deal activity by carrier size, type of deal, four broad metacategories (core processing, distribution, infrastructure and financial, and document/content management), and a number of subcategories. Data from previous Deal Trends reports are used to look at longer term trends, and leading vendors for each metacategory are identified.
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 insurance vertical.
“Over the past 18 months we have had numerous discussions with vendors and insurers about the impact of the financial crisis on decision-making,” says Mike Fitzgerald, Senior Analyst with Celent�s Insurance Group and coauthor of the report. “A consistent theme is that deals were continuing to get done, but that decision time frames were longer than in previous periods. We found in the 2011 Deal Trend data that activity has slowed as insurers seek to balance expenses against lower revenue.”
“Continuing a theme we saw last year, insurers are sticking with vendors with whom they already have a relationship,” adds Karen Monks, Analyst with Celent�s Insurance Group and coauthor of the report. “Given the still uncertain financial environment, it seems that insurers continue to be risk averse when choosing software and are staying with current suppliers for the majority of their purchases. This has implications for vendors in that effective account management and cross-selling efforts are more important than ever.”
Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally experienced analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC]. www.celent.com