Race to the Finish Line
Robert Regis Hyle | April 24, 2017
Mergers and acquisitions are a part of every industry, particularly those where profits are steady and increasing. It’s a healthy sign that companies are willing to invest, particularly in a niche market such as insurance technology.
Before all the news about insurtech took over nearly every insurance technology conversation this year, the subject of M&A activity among solution providers—particularly in the core system space—had many observers looking both ways to see what was coming next.
As part of the June issue of ITA Pro magazine, we interviewed CEOs from five of the leading insurance technology companies operating in North America and each felt certain the pattern of the last six months would continue, albeit at a slightly slower pace.
Jeffrey Glazer, CEO of Insurity, explained his company’s strategy. He looks at it like a checkerboard and each square on the board should be filled with one or more solutions to the issues that face insurers.
All agree with the view that there is no such thing as an average insurer. No one is willing to say any of the carriers in the market are unique, but there are differences that need to be addressed. One size does not necessarily fit all when it comes to insurance and insurance technology solutions.
Many solution providers look for prestige names to add to their client list, but the mid-tier and smaller market is where the true competition takes place among solution providers. The sheer number of insurance companies that fall under those two headings demands competition—and not just from core solution providers.
Inevitably, insurtech became a part of the conversation as well and this is where Glazer’s checkerboard theory plays out. In the last two decades, solution providers have served as the R&D departments for most insurance companies. Today, insurtech companies—with a wide variety of products—are stepping into that role, which makes them targets for the larger players in the market.
Distribution, underwriting, and claims management tools are entering the market at a pace never seen before. Obviously not all the companies working on such solutions will be successful and the viability of their products will be in question until proven otherwise, but the opportunity for larger, well-established solution providers to enhance their existing products is a lure that cannot be ignored.
Insurance carriers want the best solutions possible and if their solution providers aren’t finding new and better ways to enhance what’s already available, they are not being the partners they promised to be when both sides sat down and signed their initial contracts.
The race is on among the solution providers and carriers are serving as jockeys, spurring on their partners to get to the finish line first. Of course, another race will be starting shortly after that. It’s a never-ending story, after all.
- Race to the Finish Line
- New Tools, New Opportunities in Claims
- ITA LIVE: Reaching Insurance Industry Crossroads
- Advice to Insurance IT Leaders: Keep Your Eye on the Ball
- New Date, Venue for ITA LIVE 2017
- Guidewire Makes Major Push to Small and Midtier Market by Acquiring ISCS
- Insurance Disruption is Happening Right Now
- Insurity Adds Strategic Investment Partner, General Atlantic
- Beyond Transformation: The Convergence of Finance, Risk, and Actuarial Functions
- The Rapid Evolution of Consumer Protection Regulation
- Talent Hunt: Finding, Attracting, Retaining Top People
- Insurers Flexing Their Distribution Models
- Technology Driving Disruption in Insurance
- Fear of ‘Next Bubble’ Challenges Life, Annuity Carriers
- Technology Allows Commercial Lines Insurers to Stand Out
- Single Sign-on Viewed as Biggest Tech Challenge for Agencies
- ISCS Observes 20th Anniversary; Scurto Predicts Major Changes Ahead
- Policyholders and Their First Impressions
- Progressive Making Progress on the UBI Front
- High and Dry: Insurers Search for Disaster Recovery Plans
- Insurers Sign The (Un)Dotted Line
- Reflections of a Retired Insurance CIO
- Mobile Device Management Just One Answer to BYOD Issue
- Lessons from GEICO and Progressive on Winning the Critical Buying Stage
- You Are a Target for a Cyber Attack
- Web-based Systems are the Next Evolution in Claims Technology
- Gaining a “Wow” Experience from Web Users
- Time to Shift from Business/IT Alignment to Business/IT Alliance
- Healthcare Insurers Changing to Consumer Model
- Organization is the Key for Selecting Software Vendors
- Analysts Expound on the Needs of the Mid-tier Insurance Market
- Finding the Cure for Obamacare’s Website
- New Software Solutions Benefit Insurers on the Inside and Outside
- Products, Market Impede Investment in Systems for Life Insurers
- Combatting Cyber Threats: Predict, Prevent, Persist
- The Future of Telematics Heads Beyond Insurance
- The Shame in Cyber Security Lapses
- Building Policy Administration Systems for the Future
- Insurers Look Into The Eyes of Their Policyholders
- It’s a New Dawn for the ITA
INSURANCE IT NEWS
- Adaptik Named Among Best Workplaces 2017 List
- Guidewire Launches Accelerators to Meet Consumer Applications
- New Platform Enables DRC Customers to Conduct 6,000,000+ Ratings an Hour
- Roost Unveils Next Gen Smart Home Products
- MetLife Auto & Home Offers Digital Products via Guidewire
- Solartis Releases Rating Micro Service with ISO Electronic Rating Content
- Majesco Announces Digital Engagement and Microservices Platform as a Service
- Franklin Mutual Adds Roost Home Telematics Solutions
The Email Chat is a regular feature of the ITA Pro magazine and website. We send a series of questions to an insurance IT leader in search of thought-provoking responses on important issues facing the insurance industry.
ITA is pleased to present the 2014 Webinar Series. We have many topics for you to choose from and attendance is open to all ITA members. The webinar topics are current and exciting — ranging from predictive analytics to telematics and will focus on the direction insurance carriers need to follow for the future. All webinars are presented by insurance IT professionals along with some of the leading analysts and consultants in the field. There is no cost to attend an ITA webinar. For more information and to register for the webinar, click the “title” of the webinar below.
BLOGS AND COLUMNS
Robert Regis Hyle
Insurance has gone through several business and technology cycles in the last two decades and with the infusion of not just insurtech tools but with... READ MORE
The whole transportation sector is in for massive transformation. The way people and goods will be moved from point A to point B in the future will be... READ MORE
You have surely heard it said that small businesses are the growth engine for America. Today, the phrase has a special ring to it for benefits... READ MORE
With stagnant growth and lingering low interest rates, the life insurance industry faces a challenging future... READ MORE
Finding insurance carriers willing to write commercial lines risks has always been a challenge for producers... READ MORE
As Guidewire Software prepares for the start of Connections, its 11th annual user conference that begins on Nov. 2, Brian Desmond, chief marketing... READ MORE
The core systems replacement cycle is speeding up. Twenty years ago, even if you spent your entire career working at the same insurance company, you... READ MORE
- Partner News