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Nathan Golia
Nathan Golia
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10 Burning Questions from 2012: What Happened?

A year ago I&T identified several tough questions we predicted the insurance technology industry would have to confront in 2012. What happened and how much clarity did we get?
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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.

Nathan Golia is senior editor of Insurance & Technology. He joined the publication in 2010 as associate editor and covers all aspects of the nexus between insurance and information technology, including mobility, distribution, core systems, customer interaction, and risk ... View Full Bio

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Melanie Rodier
Melanie Rodier,
User Rank: Apprentice
12/21/2012 | 4:19:12 PM
re: 10 Burning Questions from 2012: What Happened?
Interesting that insurers don't want to be seen as 'snooping' with regards to social media. There is probably a difference in how users view interaction with an insurer via twitter or facebook, plus there are forms of interaction such as gaming that can definitely be more 'fun' and less intrusive than others.
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