Insurers should prepare for change in their key vendors’ strategies and teams, as buyers incorporate new products and sellers incorporate new leaders: Novarica
Boston, MA (Jan. 19, 2021) – Insurance software is a fragmented market, and breadth of offerings is key to growth for large vendors, making M&A a feature of the vertical. In a new report, Insurance Software M&A Trends: 2021 and Beyond, research and advisory firm Novarica examines current market dynamics in the insurance software space from the perspective of the potential effect on insurer technology strategies.
“Insurers choose their core systems as much for the vendor partner relationship and future roadmap as they do for the current state software,” said Matthew Josefowicz, President and CEO of Novarica, and co-author of Novarica’s new report. “In considering the potential impact of future M&A, insurers benefit from understanding the market dynamics, to help them make the best decisions on how to support their current systems and make future system decisions.”
Among the key findings of the report are:
- Dominant insurance software vendors are solidifying their position via M&A, either via IPO or PE funds, but history shows it is possible for new or outside players to challenge the leaders.
- The fragmented nature of insurance means growth depends on breadth. Large software players must continually expand their offerings, making M&A a feature of the vertical.
- Insurer technologists should prepare for change in their key vendors’ strategies and teams, as buyers incorporate new products and sellers incorporate new leaders. Insurers should understand the strategic position of their key vendors and game out various scenarios.
Click here for the table of contents or to access the report.
Report Summary
This brief examines market dynamics in M&A activity in the insurance software space from the perspective of the potential effect on insurer technology strategies.
The insurance software space is the focus of investor attention due to several recent IPOs, private equity investments, and strategic acquisitions by major tech and data firms. The venture-driven activity in the adjacent InsureTech marketplace has also drawn interest to the space.
For insurer technology leaders, understanding the dynamics of the market and how current or potential partners are likely to fare is an important part of any comprehensive enterprise technology strategy.
Click here for the table of contents or to access the report.
About Novarica
Novarica helps more than 100 insurers make better decisions about technology projects and strategy. Its research covers trends, best practices, and vendors, leveraging relationships with more than 300 insurer CIO members of its Research Council. Its advisory services provide enterprise phone and email consultations on any topic for a fixed annual fee. Consulting services range from assessments and strategic roadmaps to vendor evaluations. For more information, visit www.novarica.com.
Source: Novarica
Tags: Mergers & Acquisitions, Novarica, trends
