Thundering Pace of Insurance Software Acquisitions Continues
Insurance Experts' Forum, May 15, 2013
Several aspects of this deal stand out. It is the first acquisition by Guidewire, which until now has been a “we build it, we sell it shop;” it augments Guidewire’s capabilities in the hottest part of the technology landscape (business intelligence/analytics); and, it reinforces Guidewire’s strategy to capture the community and network effect benefits of its large customer base.
Of course, Guidewire will not be alone in offering BI/analytics to its core systems customers. Nearly every major property/casualty software provider offers its own BI/analytics functionality and/or partners with third-party providers. Cover-All’s 2010 acquisition of Moore Stephens Business Solutions is also an interesting precedent.
Here are three questions to keep in mind moving forward: Will Millbrook give Guidewire a competitive edge in vendor selections? Will other core systems vendors begin eyeing the remaining BI/analytics firms? And what kinds of insurers will want to one-stop shop for core systems and BI/analytics?
This blog has been reprinted with permission from Celent.
Donald Light is a senior analyst in Celent's insurance practice, and can be reached at email@example.com.
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The opinions posted in this blog do not necessarily reflect those of Insurance Networking News or SourceMedia.
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