The trend toward "componentized suite" core insurance system offerings continues with Fairfield, N.J.-based Cover-All Technologies' acquisition of BlueWave Technology (Honolulu), manufacturer of the PipelineClaims P&C claims software solution, through a cash transaction concluded Dec. 30, 2011.
The Cover-All/BlueWave browser-based claims administration software solution will be marketed both as a standalone solution as well as a fully integrated component within Cover-All's existing Policy and Business Intelligence products, including NexGen Policy (My Insurance Center), NexGen Business Intelligence, and NexGen Billing (currently in development), according to a vendor statement. Cover-All touts the BlueWave acquisition as positioning the vendor to deliver additional value and achieve significant competitive advantage through what it terms a fully integrated component within Cover-All's existing Policy and Business Intelligence products.
Cover-All's acquisition of Blue Wave underscores the growing dominance of the "componentized suite" model of core insurance software offerings, according to Matthew Josefowicz, partner and the managing director of Novarica (New York). "Insurance software buyers are increasingly looking for solution providers to be able to provide pre-integrated but separable components for policy, billing, and claims," Josefowicz comments. "We expect to see more consolidation in this space this year."
Karen Furtado, a partner at Boston-based SMA comments, "We are continuing to see the consolidation trend in the market as component based solution providers position for enterprise suite deals. The pendulum has been swinging in the direction of core system enterprise solutions which has created a challenging environment with a large number of policy or policy/billing players and few full suite options. As with similar transactions taking place in 2011, this will be an offering that will bear watching to see how it develops from both architecture and go-to-market viewpoints."