9. Will the Vendor Landscape Continue to Realign?
What we saw in 2011: “Through 2011 the insurance technology market saw some significant mergers and acquisitions… This energetic activity is a welcome development for the industry.”
What happened in 2012? Last year, Novarica principal Matthew Josefowicz predicted that more independent software vendors would be acquired by services firms, citing the Wyde/Mphasis and Duck Creek/Accenture deals. His rationale? "The componentized suite is becoming the dominant model for software vendors. This is likely to drive consolidation of vendors that provide only a single point solution."
Josefowicz revisited his prediction in an e-mail to Insurance & Technology:
"We did see several additional transactions, starting with Cover-All’s acquisition of BlueWave in January followed by the acquisition of PlanetSoft by eBix in June," he says. "But we were surprised by the comparatively slow pace of M&A in the sector."
Despite that, Josefowicz and Novarica believe that the sector is "ripe for additional consolidation."
This component was contributed by Anthony O'Donnell.
