During the past two years, the market for life insurance policy administration systems has been buoyed by a number of insurers upgrading older systems or buying new policy administration systems for new product lines.
New York, NY (Feb. 8, 2014) – In the report Deal Trends and Predictions in the Life Insurance Policy Administration Solutions Market: 2013 North American Edition, Celent analyzes deal activity for new policy administration systems in North America using data from 22 vendors selling policy administration solutions to North American life insurers. The report estimates the potential for new deals and upgrades through 2016.
The North American life insurance PAS market remains a competitive one served by the 22 vendors profiled in the Celent report North American Policy Administration Systems 2013: Life, Annuities, and Health Vendor View. The profiled vendors reported an average of 20 deals per year. The outlook for the North American policy administration system market is expected to grow over the next three years at a compound annual growth rate of 11.5%.
“The North American market is made up of many established players with large client bases. Although new deal volume is up for several vendors, many life insurers that have invested in vendor systems in the past are not ready to abandon their systems for a vendor replacement,” says Karen Monks, Analyst with Celent’s Insurance group and author of the report. “Upgrades will continue to be a cost-effective way for insurers to reap the benefits of modern systems in a more cautious and less disruptive way.”
Data in this report was gathered as part of Celent’s report North American Policy Administration Systems 2013: Life, Health, and Annuities ABCD Vendor View. Twenty-two policy administration vendors completed a detailed RFI to be included in that report. The RFI collected information about functionality and technology. There were also several questions about client base and recent deals. It is this subset of the RFI that forms the basis for the projections found in this report. These are validated through ongoing conversations Celent analysts have had with both vendors and insurers.
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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 based 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].