The majority of insurance software sales in Latin America consist of core systems sold to new customers and smaller insurers, according to “Latin American Insurance Software Deal Trends 2013, Life/Annuity/Health and Property/Casualty Editions,” from Celent, an international financial research and consulting firm.
Celent analyzed 88 insurance software sales that occurred between Q1 2011 and Q4 2012; 30 sales involved life insurers, 16 involved health insurers and 42 involved P&C insurers.
The deals came from eight vendors and were distributed across five of the six tiers defining carrier size. Overall, smaller insurers were the primary purchasers of packaged software in 2011 and 2012 and the deals were primarily sold to customers, which Celent anticipated.
The most common deal category was core processing; distribution was a small percentage of deals, Celent said. Sales of end-to-end suites accounted for 90 percent of all the deals analyzed, which Celent said was not unexpected, as the majority of sales were to smaller insurers. On-premise solutions accounted for 89 percent of the deals. Although SaaS deployments are seen, most are in hybrid deployments where the software is not 100 percent hosted offsite.
“Small insurers make up the majority of the market and are looking for comprehensive product functionality within one vendor's product offerings,” Celent said in the report. “Based on the information provided by vendors, insurers are using end-to-end suite products for over twenty different functions. Different from North America where end-to-end suites typically incorporate policy administration, billing and claims, in Latin America these products can also provide point of sale tools, data analytics, agency management system functionality, and finance and accounting tools, to name a few.”
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