Deal Trends in Property and Casualty Policy Administration Solutions: 2012 Asia-Pacific Edition

NEW YORK, July 12 -- Celent issued the following news release:

Abstract

Celent predicts a relatively flat outlook for new insurance deals in Asia-Pacific until 2014 and a return to growth across the region from 2014 onwards.

Last year, Celent published updates to the North American, European, and Asian-Pacific policy administration vendor reports across the property/casualty and life/annuities sectors of the industry. The data gathered for those reports provides insight into the size and dynamics of the various geographic policy administration solution markets. In a new report, Deal Trends in Property and Casualty Policy Administration Solutions: 2012 Asia-Pacific Edition, Celent provides a view of deal trends in policy administration in property and casualty in the Asia-Pacific region.

New deal activity for property/casualty policy administration systems across Asia-Pacific has been in decline since 2009. Celent believes that the market for new sales in policy administration systems in Asia-Pacific will be relatively flat until 2014, while insurers work their current plans through to completion. Insurers currently are more focused on directing their capital expenditures towards addressing front end systems, such as mobility applications, in order to accelerate sales. However, Celent believes that there are significant drivers for core system renewal across the region. Insurers need to deliver innovative products faster, improve operational efficiency, lower the cost to serve, and reduce their reliance on legacy skill sets. Consequently, Celent predicts a return to growth across the region from 2014 onwards.

"Vendor solutions vary greatly in terms of the number of countries implemented and their geographic focus. This is a concentrated market with several clear leaders," says Wenli Yuan (http://www.celent.com/analysts/wenli-yuan), Senior Analyst with Celent'sAsian Financial Services Group and author of the report. "The top three vendors account for 62% of the total Asia-Pacific market."

Momentum is building towards using modern package-based policy administration systems rather than bespoke local developments. Opportunities for deals in the Asia-Pacific region can be found in many areas, such as newly set up insurance companies, insurers that plan to support new lines of business, use new distribution channels, replace legacy systems, migrate to one vendor's modern solution, consolidate infrastructure after mergers, replace legacy while business grows, or, in the case of multinational insurers, plan to rationalize group resources.

This report reviews market sizing and client implementations as well as vendor positioning.

By Wenli Yuan

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