On 7 March 2013, SAP announced that it plans to acquire the North American software provider Camilion Solutions, which offers solutions in insurance product development, product life cycle management and underwriting primarily for property and casualty (P&C) products. Financial terms of the deal were not disclosed. SAP plans to continue to offer ProductAuthority as a stand-alone product, and to integrate both ProductAuthority and PolicyAuthority with the SAP suite to support policy management, and with other SAP solutions (such as claims and billing) to support a P&C end-to-end suite.
SAP has targeted the North American insurance market for years, but has found it difficult to compete against local rivals, particularly those that offer a suite of modules to support the end-to-end insurance process. To combat this, SAP created an OEM relationship with Camilion in 2011. This acquisition takes that relationship one step further, and provides SAP with improved capabilities to compete in the North American P&C solutions market. The acquisition will lead to further North American business opportunities, as Camilion's assets will:
This acquisition will revitalize Camilion, which has won relatively few new customers for the past two years, mostly due its lack of experience in personal-lines P&C and buyer preferences shifting to suites. Camilion customers will benefit from new enhancements to the rebranded solution, which will also better position SAP to meet North American market requirements.
Although Camilion's assets advance SAP toward its vision of competing in the North American P&C market and supporting P&C insurers' core business needs, challenges remain. SAP will need to carefully manage its integration efforts and positioning to ensure that it can still serve the needs of midsize insurers. Further, SAP faces an uphill battle in realizing its plans to take Camilion beyond P&C. While some Camilion life insurance customers use ProductAuthority, the product line offers limited content. SAP must invest heavily in the policy management capability before it can support life insurance product requirements, and will likely require a partner to develop products that meet local buyers' needs.
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