The North American market for P&C core systems has consolidated as policy, billing and claims management modules have become increasingly commoditized. Buyer attention and vendor investment have shifted to broader platform capabilities, supporting customer engagement and more effective use of data.
This Magic Quadrant provides a lens into the North American market for P&C core platforms aimed at Tier 1, Tier 2 and midsize Tier 3 P&C insurers — those with at least $50 million or more (or equivalent in direct written premium [DWP] value; see Note 1). It does not represent a comprehensive market scan of all vendors offering P&C core systems. Instead, it is a review of established and emerging vendors offering P&C core platforms with broad customer, partner, data and employee-focused capabilities suitable for multiline P&C insurers.
Gartner defines the North American P&C core platform market as composed of offerings that are aligned with the concept of the digital business technology platform (see "Building a Digital Business Technology Platform" ). These core platforms include elements such as:
Core systems, including core modules for:
Policy management, which provides end-to-end policy management and issuance — including quoting, rating, underwriting, policy generation and statistical reporting
Billing management, which supports the entire insurance billing and collections cycle, including functionality such as electronic bill presentment and payment (EBPP)
Claims management, which supports every phase of the claims process for P&C insurers, from first notice of loss (FNOL) through settlement and reporting
Data repository, which uses a reference data model to centralize data from both core systems that are a part of the platform and other external systems
Reporting and analytics, which provide prebuilt dashboards and reports with industry-specific key performance indicators and support for ad hoc analysis
Portals and apps, which provide customers, agents and suppliers with a variety of functions from any device, such as sales and self-service, lead management, collaboration and billing
Integration accelerators, which extend the functionality of the core platform by tapping an ecosystem of third parties offering additional functional capabilities and data sources
The range of solutions and technologies that vendors are incorporating into their core platforms will continue to expand over time. This list above is not exhaustive, but it represents elements that are commonly available at this time.
Source: Gartner (September 2017)
Adaptik's P&C core platform offering is Adaptik Suite. The solution consists of core policy and billing modules with support for rating, embedded analytics, an underwriting workstation, and mobile and portal solutions for agents and policyholders. For its core claims module, Adaptik has white-labeled a third-party solution. The current version of Adaptik Suite is 8.7, released in February 2017. With the exception of the claims module, which was developed in .NET, all core modules developed by Adaptik are Java EE applications, which support Oracle Databases.
As of 31 March 2017, Adaptik supported six policy and five underwriting deployments in production with North American insurers across all tiers, but with the majority of customers (four) in Tier 2. Of these six, two customers have deployed their solutions off-premises. Adaptik reports annual revenue in the range of $11 million to $20 million. The company has a total of 65 employees, with 35 employees dedicated to R&D, three to sales and marketing, 23 to professional services and four to support.
Adaptik reported five new licenses for its solutions from 2016 through the first quarter of 2017 — two policy modules, one billing module and two rating engine licenses.
Adaptik's Product Designer component offers an intuitive interface, accessible to business users, that enables rapid production configuration (including nontraditional products) without the need for IT development resources.
The platform supports the ability to add new integrations quickly without coding through a GUI-based mechanism called Actions.
Adaptik Policy is particularly suited for large commercial LOBs. It offers support for large commercial schedules, including complex filter and sorting options, and the ability to quickly propagate or edit multiple list items.
Adaptik is not yet experienced supporting customers in production across all modules and components that form its core platform. At the time this research was conducted, Adaptik's production experience was limited to its policy management module, rating engine and underwriting workstation. The vendor is in the process of supporting implementations of its core billing and claims modules, portal and mobile offerings, and BI and analytics solutions.
The vendor faces product viability risk with its claims solution, which is white-labeled from a third party, which was acquired by a competitor. Adaptik has limited control over the future development of this solution and may not be able to retain access over time.
The vendor lacks broad LOB experience due to a limited number of personal line customers in production. The majority of Adaptik's customers are using its solutions to support commercial lines, specialty lines and worker's compensation. New personal line implementations are in progress with deployments taking place in 2017 and 2018.
As of 31 March 2017, BriteCore supported 41 North American insurers in production with its core modules. BriteCore also supported 39 portal and mobile solution deployments for agents, and six portal and mobile solution deployments for policyholders. With the exception of one Tier 2 insurer, all of BriteCore's customers are small Tier 3 insurers. The company reports annual revenue in the range of $10 million or less. BriteCore has a total of 50 employees, with 11 employees dedicated to R&D, three to sales and marketing, 25 to professional services, and 11 to support.
BriteCore reported six new insurer customer wins from 2016 through the first quarter of 2017, and an additional four wins for its portal and mobile solutions for policyholders during the same period.
BriteCore is built on a modern, cloud-native architecture supported with an open-source development model that is unique in this market. Customers who become certified in BriteCore development are able to contribute to the code base under the vendor's oversight, which provides customers with more granular control over functionality and flexibility with enhancements than with vendor-supplied configuration tools.
The company has been very successful with sales execution — the second highest in terms of raw new customer numbers among the vendors profiled in this research. This market success will feed future opportunities and a revenue source for continued R&D.
BriteCore supports rapid deployment for the LOBs that have been deployed to production through a combination of fully functional out-of-the-box functionality and simple configuration options for the most frequently modified settings that can be managed by non-IT developer resources.
BriteCore has a monolithic architecture for its core system modules in which the core modules for policy, billing and claims are delivered together as an all-in-one solution. Stand-alone deployment of the modules is not supported.
Base functionality is driven by the vendor's prior production experience and has gaps in certain areas. For example, business process management, refund processing and catastrophe management are limited or supported via workarounds. Collection management, fraud management and supply chain management is not supported in the base product and would require custom code or integration.
BriteCore does not include a set of GUI-based configuration tools, which are the norm in this market. Configuration beyond simple, common settings requires additional development (by either the customer or BriteCore) in YAML via its open-source model.
CodeObjects provided only a partial response to Gartner's request for information for this Magic Quadrant. Therefore, this profile includes estimates and was prepared using public and other appropriate data sources.
CodeObjects offers the P&C core platform InsuranceEnterprise. The solution consists of core policy, billing and claims modules; a rating engine; support for underwriting and reinsurance; mobile and portal solutions for agents and policyholders; a data repository; and reporting/analytics. The system was developed on Java EE and runs on DB2, SQL Server, MySQL and Oracle Databases.
As of 31 December 2016, CodeObjects supported sixteen North American insurers in production with its core policy, billing and claims modules — one Tier 2 insurer and the remainder Tier 3 insurers. The company reports annual revenue in the range of $11 million to $20 million. CodeObjects has a total of 84 employees, with 36 employees dedicated to R&D, five to sales and marketing, 16 to professional services, and seven to support.
CodeObjects had three new customer wins that included all three core policy, billing and claims modules during 2016.
CodeObjects is able to support rapid deployments of core platform capabilities for standard personal and commercial LOBs. The company offers a full platform, with core policy, billing and claims modules as well as portal and mobile capabilities, a data repository, and BI and analytics, and it has production experience with cloud deployments of all platform elements.
InsuranceEnterprise has proven to be well-suited from a cost and functional perspective for smaller Tier 3 customers (the majority of its customer base) and also scalable for larger (Tier 2) deployments.
The company has high-quality deliverables, and fields high-performance personnel who excel at partnering with their customers.
CodeObjects has limited production experience with some common commercial LOBs such as commercial auto, garage and crime. The company's production experience is concentrated among a handful of standard personal and commercial LOBs.
The company has not demonstrated strong base capabilities for portal and mobile support. Deployment of these platform elements may require extensive configuration to meet customer requirements.
SI partner support for CodeObjects is limited to two SI partners. The company has not yet established a formal certification program for SI partner resources.
Duck Creek offers the P&C core platform Duck Creek Suite, which includes core policy, billing and claims modules; a rating engine; support for underwriting; mobile and portal offerings for both policyholder and agents; and a data repository and BI/analytics package. The current version of Duck Creek Suite is version 2017 R1, released in April 2017. The system was developed in .NET and is certified with Microsoft SQL Server databases.
As of 31 March 2017, in North America, Duck Creek supported 90 production deployments of its core modules (52 policy, 11 billing and 27 claims), 73 deployments of its rating engine, 146 deployments of its mobile and portal solutions (58 for policyholders and 88 for agents), eight data repository deployments, and 13 BI and analytics deployments. These solutions were in use across all three tiers of insurers. As of 31 December 2016, Duck Creek also supported 18 core module deployments outside North America — seven policy, two billing and seven claims deployments in Europe, and one policy and one billing deployment in Latin America. As a privately owned business, the company does not share revenue information. Gartner estimates that Duck Creek's total revenue is in the range of $101 million to $150 million. Duck Creek has a total of 975 employees, with 415 dedicated to R&D, 80 to sales and marketing, 460 to professional services, and eight to support across its solutions.
Duck Creek reported 14 new U.S. and Canadian licenses for its core modules solutions from 2016 through the first quarter of 2017 — six policy, six billing and two claims. Four of these licenses were for SaaS subscriptions of Duck Creek's OnDemand offering. During the same period, the company also sold five new licenses for its rating engine, 16 mobile and portal solution licenses (six policyholder and 10 agent), two new licenses for its data repository, and two licenses for its BI and analytics solution. Outside of North America, Duck Creek reported four new core solution licenses during 2016 across Europe — two policy and two billing.
Duck Creek offers among the broadest capabilities in three key dimensions: overall functional depth, which is outstanding across its platform elements; functional breadth, with its full complement of core, customer experience and data platform elements; and ability to scale, with a strong representation of Tier 1, Tier 2 and Tier 3 customers in production.
The company is one of the few vendors with significant experience with worker compensation — supporting 25 customers in production with this LOB.
The company has invested in a formal innovation program that benefits from both a relationship with Accenture innovation resources (and exposure to their cross-industry expertise) as well as work with several large, Tier 1 insurers. This has resulted in innovations such as the pay-as-you-drive product accelerator and CAT map-based reassignment, and has helped Duck Creek serve as a channel for innovation for smaller Tier 2 and Tier 3 insurers.
Duck Creek is one of the few vendors profiled in this research with deployments in production outside North America. It has demonstrated its viability as an international vendor by supporting both global insurers operating in multiple countries and regional insurers within their local markets.
Duck Creek has not fully established a track record among all Tiers with its data repository and BI and analytics offerings, which were introduced or acquired over the last two years. These solutions are still being built out and refined.
Many of the vendor's SI partner resources have been trained and certified on Duck Creek solutions in only the last year, increasing risk associated with inexperienced support resources. (One-half of its SI partners formalized their arrangement in 2017.)
Duck Creek has some gaps and limitations in its portal and mobile offerings. The company does not offer a supplier portal, and its mobile web applications offer limited base capabilities that would require additional configuration by the customer to fully support functionality such as billing management, claims FNOL, and agent communication with adjuster.
DXC Technology, formed in April 2017 following a merger between the Enterprise Services business of Hewlett Packard Enterprise and CSC, offers the P&C core platform DXC Digital Suite. This offering includes core policy, billing and claims modules; support for rating and underwriting; mobile and portal offerings for both policyholder and agents; and a data repository. The current version of the platform is J.3, released in June 2017. The front ends of the DXC Technology solutions were developed as HTML5 single pages using AngularJS 1, CSS3 and Bootstrap 2; the business layers were written in Java and .NET; and the platform supports Microsoft SQL Server databases.
As of 31 March 2017, DXC Technology supported 28 production deployments of its next-generation core modules among P&C insurers in North America — 10 policy, five billing and 13 claims. (The company also continues to support 124 customers in production with prior versions of these modules.) These modules had been deployed primarily by Tier 3 insurers, but there were two deployments for each module among Tier 1 or Tier 2 insurers. The company also supported 10 deployments of its rating engine, seven deployments of its underwriting workstation, nine deployments of its mobile and portal solution for agents, and 10 data repository deployments. Across its various platform offerings, an average of 41% had been deployed via the cloud. DXC Technology has a total 170,000 employees across the globe. However, it does not break employee numbers or revenue down to individual products. Gartner estimates that revenue associated with the DXC Digital Suite is in the range of $81 million to $90 million, and that approximately 1,000 employees support the platform.
DXC Technology reported nine new U.S. and Canadian licenses for its solutions from 2016 through the first quarter of 2017 — four of these were for core policy (1), billing (1) and claims modules (2) — two were for rating and underwriting, two were for mobile and portal solutions, and one was for the data repository.
DXC Technology has assembled an extensive set of offerings — available both stand-alone or as part of its core platform — from a range of proprietary modules and components. These include less commonly available stand-alone offerings for reinsurance and underwriting.
The vendor's policy module includes advanced product configuration functionality, such as configuration work package tracking, business rule visualization, and what-if and profitability analysis.
The company has invested heavily in a formal user feedback process that has developed strong and engaged user communities.
The DXC Digital Suite lacks some advanced functionality for underwriting, such as underwriting scorecards and analytics. Additional configuration would be required to support advanced claims functionality such as the creation of new groups and assignment rules for catastrophes.
Sales execution has been low due to functional gaps and lack of a coherent platform message. The company secured less than a 2% share of new customer wins for platform offerings from 2016 through 1Q17.
Implementation and support options for customers are limited. The company does not use SI partners, but directly supports all implementations and deployments with its own professional services.
EIS Group offers the P&C core platform EIS Core Insurance Suite, which includes core policy, billing and claims modules; support for rating and underwriting; and mobile and portal offerings for both policyholder and agents. The platform also includes a data repository and support for BI/analytics. The vendor uses an agile methodology and releases updates to the software every three weeks. The system was developed in Java and is database agnostic, supporting any database with a JDBC driver that supports JA, including DB2, Microsoft SQL Server, and Oracle Databases.
As of 31 March 2017, EIS Group supported 30 production deployments of its core modules in North America — 11 policy, 11 billing and 8 claims deployments — across Tier 1, Tier 2 and Tier 3 insurers. The company also supported three deployments of its portal and mobile solutions for policyholders and six deployments of portal and mobile capabilities for agents. Of these deployments, two (one policy and one billing) were cloud-based deployments. As of 31 December 2016, EIS Group also supported eight core module deployments outside North America — three each for policy, two billing and three claims in the Asia/Pacific region. As a privately owned business, the company does not share revenue information. Gartner estimates that EIS Group's annual revenue is in the range of $41 million to $50 million. EIS Group has a total of 564 employees, with 220 employees dedicated to R&D, 29 to sales and marketing, and 247 to professional services and support.
EIS Group reported one new North American customer win of its full P&C core platform from 2016 through the first quarter of 2017. During the same period, the company also reported one new customer win for its full P&C core platform in the Asia/Pacific region.
In contrast to the majority of its competitors, EIS Group's core policy, billing and claims modules were developed together (versus develop over time or assembled via acquisition) and share a common data model. This contributes to a more seamless and consistent user experience across the platform.
The EIS Group core policy module offers flexible product management capable of rapid product development. The company has been among the first to support the use of emerging technologies, such as chatbots and AI.
EIS Group is one of a small subset of vendors profiled in this research that support international operations and can point to successful deployments (and continued new sales activity) outside North America.
EIS Group lacks production experience with a broad range of LOBs, which may impact deployment time frames for new LOBs first going into production. The company has limited production experience supporting commercial lines and specialty lines, and no production experience supporting workers' compensation.
The company's sales execution has been low for this market due to a major reorganization in late 2013 and 2014 from which it has emerged. EIS Group secured less than a 2% share of new customer wins for platform offerings from 2016 through 1Q17. This slow growth in customers may increase vendor viability risk.
There are gaps in out-of-the-box capabilities or production experience for certain, primarily advanced functional capabilities, such as lack of an underwriting desktop view and pattern analysis, catastrophe management collaboration and analytics, and claim litigation.
Guidewire offers two P&C core platforms. The first of these is InsuranceNow, formerly ISCS SurePower Innovation Suite, which Guidewire acquired in early 2017. InsuranceNow is a cloud-based, all-in-one offering intended for smaller, Tier 3 insurers. The solution consists of core policy, billing and claims modules; an agent portal; and a policyholder service portal, which are all marketed as a single solution. The current version of InsuranceNow is version 3.1.1., released in March 2017. All core modules were developed in Java EE, with Amazon Aurora and Redshift databases preferred deployment options for operational data and business analytics.
As of 31 March 2017, Guidewire had 30 InsuranceNow customers in production in North America — 29 Tier 3, and one Tier 1 insurer. Of these customers, 25 have deployed via the cloud. The company reported total revenue of $424 million for fiscal year 2016, ending 31 July 2016. Guidewire has a total of 1,304 employees, with 464 employees dedicated to R&D, 267 to sales and marketing, and 573 to professional services and support across its solutions.
Guidewire reported four new North American customer wins for InsuranceNow from 2016 through the first quarter of 2017.
Guidewire InsuranceNow's combination of a full core platform, with strong fundamental capabilities and cloud-based deployment, make it a compelling candidate for Tier 3 insurers in North America.
In contrast to many competitors with a history of on-premises deployments, the company has strong experience with cloud-based deployments with InsuranceNow, with more than 80% of current customers deployed off-premises and hosted and maintained by Guidewire.
InsuranceNow includes a large collection of prebuilt business rules with parameters that can be easily adjusted by business or non-IT developer users to quickly accomplish simple configuration.
As part of its full-service model, InsuranceNow is offered with limited configuration tools for business users. This focus on out-of-the-box capabilities makes the solution less suitable for buyers seeking a high degree of customization.
The platform has some functional gaps: lack of underwriting analytics and management dashboard, limitations with collections management, a lack of catastrophe analytics, and lack of visualization of business processes.
InsuranceNow is not ideally suited as a primary core platform for Tier 1 or Tier 2 insurers. Its market focus and experience is primarily with Tier 3 insurers, with actual production volumes of $500 million or less. It may also be an option for a Tier 1 or Tier 2 insurer's smaller book of business or "greenfield" initiatives.
The second core platform that Guidewire offers is InsuranceSuite, a collection of modules and components that grew both organically and via acquisition from the vendor's first module, ClaimCenter, which was released in 2003. In 2017, InsuranceSuite includes core policy, billing and claims modules, and a rating engine. As extension to these core offerings in InsuranceSuite, Guidewire also offers an underwriting workstation; mobile and portal solutions for policyholders, agents, customer service representatives and claims vendors; a data platform; and a predictive analytics solution. The current version of InsuranceSuite is version 9, released in June 2016. All core modules were developed in Java EE and support SQL and Oracle Databases.
As of 31 March 2017, Guidewire supported 227 production deployments of its core modules in North America — 43 policy, 47 billing, 94 claims, 29 rating and 14 underwriting workstation — across all three tiers of insurers. Nine of these (three policy, two billing and four claims) were cloud-based deployments. Guidewire also supported 21 portal and mobile solution deployments (16 for policyholders and five for agents) as well as 53 data solutions (eight data repository and 45 BI/analytics). The company supported 95 core module deployments across all four regions outside North America.
Guidewire reported 78 new U.S. and Canadian licenses for its core systems from 2016 through the first quarter of 2017 — 18 policy, 19 billing, 25 claims, 15 rating and one underwriting workstation. The company also reported 32 new licenses for its mobile and portal solutions (19 policyholder and 13 agent) and 48 licenses for its data solutions (18 data repository and 30 BI and analytics). Outside of North America, Guidewire secured 25 new core solution licenses during 2016 across Europe, Asia/Pacific and Latin America.
InsuranceSuite and its extensions offer a platform with a wide breadth of capabilities that have proven to be scalable, extendable and reliable. Its modular architecture and performance with high-production volumes has enabled Guidewire to make significant inroads into the large, Tier 1 insurer market — both in North America and globally.
Guidewire has an expansive network of technology and service partners, along with formal certification programs for both.
The company's combination of compelling solutions and comprehensive marketing programs has resulted in sales execution that continues to exceed its competitors by a wide margin and contribute to a dominant position in this market. From a broad core platform offering perspective, Guidewire secured nearly 33% of the new customer wins in this market — three times its nearest competitor.
Guidewire is expanding rapidly internationally, and now has customers in production in every region that Gartner tracks outside North America. Although Guidewire does not have the same market presence as in North America, it is emerging as a sales leader in these other regions. This continues to broaden the vendor's revenue base, and it strengthens its position as a solution for global insurers.
InsuranceSuite's high cost and the higher levels of complexity associated with its implementations require financial, IT and, program management resources more commonly found in Tier 1, Tier 2 and large Tier 3 insurers. It is less competitive as a solution for small, Tier 3 insurers.
Guidewire's upgrade process is significantly longer and more complex that the norm for upgrades in this market. The company continues to invest in upgrade tools and methodologies, and it has created an upgrade center of excellence. It has also introduced an upgrade management service to help its customers navigate this process.
The supply of qualified SI partner resources is not keeping pace with demand, which threatens the success of individual implementations and the ability of the company to sustain growth. Guidewire customers have had to actively recruit resources from their personal networks to fill gaps in resources available from the vendor and its partners. Guidewire reports that it has increased training and certification opportunities for SI partners and also continues to add new SI partners to its program.
Insuresoft's P&C core platform offering is Diamond, which is marketed as an all-in-one system for Tier 3 insurers. The solution consists of core policy, billing and claims modules with support for rating, reinsurance, mobile and portal solutions, and a common data repository. The current version of Diamond is 532, released in January 2017. The system was developed in .NET and supports Microsoft SQL Server databases.
As of 31 March 2017, Insuresoft supported 30 insurers in production with its core policy, billing and claims modules. Six of these insurers were using Insuresoft's mobile and portal solution for both policyholders and agents. As a private company, Insuresoft does not share revenue information. Gartner estimates that revenue for Insuresoft is in the range of $21 million to $30 million. The company has a total of 131 employees, with 75 dedicated to R&D, eight to sales and marketing, 23 to professional services and 25 to support.
Insuresoft reported three new North American insurer customers for its core policy (including rating), billing and claims solutions from 2016 through the first quarter of 2017.
Insuresoft is a strong candidate for small, Tier 3 insurers. It offers core system modules with solid fundamental capabilities, and establishes close partnerships for implementation and ongoing service that are attractive to smaller insurers with more limited resources.
Insuresoft offers strong integration, and it has focused on serving as the back-end engine for other systems of engagement. This has led to successful partnerships with insurtechs.
In contrast to a number of its competitors, who have traditionally had an on-premises deployment model, Insuresoft is experienced supporting cloud deployments — with 80% of its platform offerings deployed via the cloud.
Insuresoft's core platform lacks a data repository, and has gaps in other functional capabilities such as mobile device support for agents and adjusters, some limitations in configuration, and limitations with workflow visualization.
Insuresoft has not yet established a track record as a provider of primary core platforms for Tier 1 or large Tier 2 insurers. Its market focus and experience is nearly exclusively with Tier 3 insurers. With one exception, actual production volumes are $750 million or less.
The company has only one SI partner, with 10 or fewer trained resources. This limits support options available to its customers and may constrain Insuresoft's ability to support future growth.
Insurity offers Insurance Decisions Suite, which consists of core policy, billing and claims modules; a rating engine; a reinsurance module; portal and mobile solutions for both policyholders and agents; and a data platform. Insurity doesn't follow a major release schedule, but instead delivers incremental updates on a regular basis. Insurance Decisions Suite was developed in .NET and supports Microsoft SQL Server databases.
As of 31 March 2017, Insurity had 68 North American insurers in production with policy and rating, six in production with billing, and six in production with claims. The company also supported nine deployments each for its portal and mobile solutions for agents and for policyholders, 18 deployments of its data repository, and seven deployments of its BI and analytics solution. The company reported total revenue in the range of $151 million to $200 million. Insurity has a total of 800 employees, with 80 dedicated to R&D, 30 to sales and marketing, 455 to professional services and 235 to support across its solutions.
Insurity reported five new North American new customer wins for its core policy (including rating), billing and claims modules from 2016 through the first quarter of 2017. During the same period, the company secured one win for its portal and mobile solutions for policyholders, four wins for its portal and mobile solutions for agents, and six wins for its data platform.
Insurity has introduced an innovative and unique "live tile" interface for its solutions that provides users with widgets that can be arranged and configured to support different roles and personal preferences.
The company was among the first core system vendors to emphasize the importance of data management. Its data platform is more mature than its competitors and has been successful acquiring new customers as both a complement to Insurity's platform and as a stand-alone offering.
Insurity has extensive experience with insurers in commercial lines, specialty lines and workers compensation. (It is supporting three dozen workers' comp customers.) Its full-service model for bureau-based product updates is effective and rare in this market.
Personal line customers make up a smaller proportion of Insurity's customer base. Insurity has only introduced and deployed to production within the last year portal capabilities and configuration tools that enable it to support more rapidly changing personal line product offerings.
Some functions within Insurity's billing module — such as the automatic application of certain discounts, full management of the addition and removal of policies, and the management of multiple payments — would require custom code and have not yet been deployed to production.
Some advanced capabilities for fraud management, catastrophe management and supply chain management in Insurity's claims management module would require custom integration and have not yet been deployed to production.
Oceanwide offers the Bridge Insurance Software Suite (Bridge). The company was acquired by Insurity in 2015 and operates as an Insurity company under the Oceanwide brand. Bridge consists of core policy, billing and claims modules, with the policy module available on a stand-alone basis. The offering also includes a rating engine and underwriting workstation, portal and mobile solutions for policyholders and agents, a common data repository, and embedded BI and analytics support. The current version of Bridge is 1.0.89, released in May 2017. The system was developed in .NET and supports Microsoft SQL Server databases.
As of 31 March 2017, Oceanwide supported 18 deployments of its policy module (including rating and underwriting) among North American insurers, and one deployment each of its billing and claims modules. Oceanwide also supported nine deployments each for its portal and mobile solution for agents. All Oceanwide customers have deployed via the cloud. Outside of North America, the company supported three policy deployments in Asia/Pacific, four policy deployments and one billing deployment in Europe, and two policy module deployments in Latin America.
Oceanwide secured six new North American licenses for its policy module (including rating, underwriting, and BI and analytics) from 2016 through the first quarter of 2017. Along with policy, three of these six deals included billing and claims modules. The company also secured three wins for its portal and mobile solutions for agents. Oceanwide also has 12 noninsurers (such as managing general agencies or brokerages) that are in production with Bridge, and it reported five new licenses for this market during the same period.
The combination of comprehensive production configuration and rapid deployment via the cloud makes Bridge a strong candidate for small, specialty line insurers and greenfield initiatives with a focus on custom insurance products.
Strong portal functionality also enables Bridge to function effectively as a quote and buy portal.
The company is experienced with on off-premises deployments and has focused solely on this model with Bridge since the product's inception. It is the only vendor profiled in this research with 100% of its customer base deployed in multitenant hosting.
Bridge is a strong candidate for cost-effective and rapid deployment of policy management capabilities into new regions. The system supports multiple currencies and languages, and has been deployed to several regions outside North America.
Oceanwide is not a strong candidate for insurance CIOs seeking prebuilt product definitions and production experience. With the exception of commercial general liability, it is supporting two or fewer deployments in other LOBs. It has no experience supporting standard LOBs such as personal auto, renters, umbrella and commercial auto.
The platform has gaps in base capabilities or production experience with some advanced functionality, such as workflow visualization, underwriting scorecards and analytics, catastrophe management, fraud management, supply chain analytics and scoring, and claim litigation.
The company's production experience is policy-centric; it has not proven the viability of Bridge as a P&C core platform. Oceanwide has limited experience supporting billing and claims in production (one deployment each) and has limited to no experience supporting platform elements such as a data repository, BI and analytics, or portal and mobile solutions for policyholders.
Majesco offers the P&C core platform Majesco P&C Suite, which includes core policy, billing and claims modules with support for rating, underwriting and reinsurance. Majesco P&C Suite also includes mobile and portal offerings for both policyholder and agents, and a data repository and BI/analytics package. The current version of Majesco's platform is version 5, released in 2016. The next major release is planned for the third quarter of 2017. The system was developed in Java and supports Microsoft SQL Server and Oracle Databases.
As of 31 March 2017, in North America, Majesco supported 139 production deployments of its core modules — 62 policy (including rating), 54 billing and 23 claims. These solutions were in use across all three tiers of insurers. An average of 57% of these deployments were off-premises. The company reports annual revenue of $121.8 million for fiscal year 2016 through 2017. Majesco has 2,163 employees, with 390 dedicated to R&D, 28 to sales and marketing, 1,595 to professional services, and 150 dedicated to support across its solutions.
Majesco reported eight new U.S. and Canadian licenses for its core module solutions from 2016 through the first quarter of 2017 — three policy, three billing and two claims. During the same period, the company also sold four new licenses each for mobile and portal solutions for policyholders and for agents, and four new licenses for its data repository and BI/analytics package.
Majesco offers one of the most complete core processing capabilities and broad LOB support within this market. Majesco P&C Suite has deployed to production with a large number of insurers across a wide variety of LOBs in personal, commercial, specialty lines and worker's compensation.
Majesco Policy for P&C includes strong product configuration functionality, with support for management of configuration tasks and work packages, and parent-child product definitions and deviations. Majesco provides ISO-ready content and monthly updates.
In contrast to competitors with a history of primarily on-premises implementations, Majesco offers flexible deployment options that include on-premises, hosting its customers in its own data center and in public cloud services. More than 50% of its customers have deployed off-premises.
Majesco is still in the process of establishing its claims module, the weakest of its three policy, billing and claims modules. Majesco's claims module was brought to market later than policy and billing, and has been less widely adopted than the other modules by a factor of two to one. With two exceptions, all claims deployments have been with Tier 3 insurers.
Majesco's policy deployment experience is fragmented across at several significantly different versions — old and new Majesco Policy for P&C versions, and old and new Cover-All Policy versions that came with the Majesco and Cover-All Technologies merger. The need to support multiple older versions may constrain forward progress with its current policy solution.
The company has limited production experience with some advanced claims capabilities, such as fraud management, catastrophe analytics, and supply chain partner collaboration and analysis.
OneShield offers the P&C core platform OneShield Enterprise, which includes core policy, billing and claims modules; a rating engine; and support for underwriting. OneShield Enterprise also includes mobile and portal offerings for both policyholders and agents, a data repository and a BI/analytics package. The current version of the platform is version 5.0, released in 2016. The system was developed in Java and supports Oracle Databases.
As of 31 March 2017, in North America, OneShield supported 27 production deployments of its core modules — 24 policy (including rating) and three billing. The company also supported 24 deployments of its portal and mobile solution for agents, and one deployment of its portal and mobile solutions for policyholder. These solutions were in use among Tier 2 and Tier 3 insurers, and one Tier 1 insurer. As a privately held organization, the company does not share revenue information. Gartner estimates that annual revenue is in the range of $21 million to $30 million. OneShield has 166 employees, with 35 dedicated to R&D, 16 to sales and marketing, 104 to professional services, and 11 dedicated to support across its solutions.
OneShield reported seven new North American licenses for its core modules from 2016 through the first quarter of 2017 — two policy (including rating), three billing and two claims. During the same period, the company also sold two new licenses for portal and mobile solutions for policyholders, three new licenses for portal and mobile solutions for agents, and three new licenses for its BI and analytics package.
OneShield Policy provides comprehensive product development and configuration tools. Access can be configured to provide varying capabilities to meet the needs or skill sets of different users — from less technical business users performing simple tasks to IT developers performing complex configuration.
In contrast to competitors with a commercial or personal lines focus, the company is well-positioned to support new implementations with prebuilt content across a wide range of LOBs. OneShield is experienced supporting personal, commercial, worker compensation and specialty LOBs in production.
OneShield's policy solution is scalable both up and down premium tiers. It is supporting Tier 1, Tier 2 and Tier 3 insurers in production.
OneShield has recently made the transition from best-of-breed policy vendor to a core platform vendor. The bulk of OneShield's experience has been with its policy and billing management modules. Its first claims customer was deployed to production in 2017.
OneShield has functional gaps in mobile support for claims adjusters (which would require additional configuration for capabilities such as lists of claim activities and access to claim summaries) and would require custom integration for fraud management beyond business-rule-based fraud scoring and SIU support.
OneShield has a smaller number of R&D resources (35 versus an average of more than 100 for this market) and has been slower to build out its core platform. OneShield typically partners with customers to jointly develop new enhancements for their products. This approach may make it less suitable for insurance CIOs who are aggressively pursuing support for new technology and digital business models fully out of the box.
Sapiens offers the Sapiens Stingray System, formerly from Maximum Processing, which Sapiens acquired in 2016. The Stingray System is an all-in-one solution targeting Tier 3 insurers. It includes modules for policy, billing and claims; a rating engine; support for underwriting and reinsurance; mobile and portal solutions for agents and policyholders; a data repository; and a BI and analytics package. The latest version of the system is 7.7, released October 2016. The front end was developed using Java and HTML, and the business layer with C++. The system supports Microsoft SQL Server and SQL databases.
As of 31 March 2017, Sapiens supported 18 North American that were in production with the Sapiens Stingray System. The system had been deployed primarily by Tier 3 insurers, but it has been licensed by two Tier 1 insurers and one Tier 2 insurer. The majority of these deployments (14 out of 18) have been cloud-based deployments. Sapiens reported total revenue of $216 million for 2016. Revenue associated with the Stingray System are in the range of $10 million to $20 million. Sapiens has 2,500 employees globally with 108 supporting the Stingray System — six employees dedicated to R&D, three to sales and marketing, 87 to professional services and 12 to support.
Sapiens reported four new North American customer wins for the Stingray System from 2016 through the first quarter of 2017.
In the Stingray System, Sapiens offers a complete mix of fundamental core processing capabilities with some more advanced features, such as a graphical business rule and workflow editor, BI and analytics, and portals with responsive design, that it has experience supporting in production. The combination of this broad range of functional capabilities and cloud deployment make the Stingray System a competitive offering for the Tier 3 insurer target market.
The system is highly configurable and capable of supporting a wide range of insurance products. Sapiens is experienced supporting a broad range of personal, commercial and specialty LOBs in production.
The system is offered on straightforward terms with an aggressive price point that makes it an attractive option both for small insurers and large insurers that need a cost-effective and rapidly deployable solution for specific LOBs or new market opportunities.
Sapiens Stingray System is not suitable as a primary platform for medium and large insurers. Although it has been licensed by Tier 1 and Tier 2 insurers, the largest production volumes are under $300 million.
The system lacks well-defined base functionality and relies heavily on configuration to fully implement most capabilities. This can make it challenging for customers to gain a clear understanding of base functionality, and could lengthen time needed for implementation.
There are no implementation support options outside of Sapiens professional services — Sapiens has no SI partners for the Stingray Systems. This restricts support options and increases the risk of resource constraints and challenges with supporting growth.
Sapiens acquired StoneRiver in early 2017, and continues to market Stream Suite under the StoneRiver brand as a Sapiens company. StoneRiver's core platform, Stream Suite includes core policy, billing and claims modules; support for rating and underwriting; a reinsurance module; mobile and portal offerings for both policyholder and agents; a data repository; and a BI and analytics package. The current version of Stream Suite is 8.2, released in June 2016. Stream Suite was developed in Java and supports DB2, Microsoft SQL Server and Oracle Databases.
As of 31 March 2017, Sapiens supported 32 production deployments of its core modules in North America — 22 policy, four billing and six claims. Stream Suite is in use primarily with Tier 3 insurers, but one Tier 1 and two Tier 2 insurers have deployed core modules. All deployments have been on-premises. Sapiens reports that approximately 100 full-time equivalents (FTEs) are dedicated to Stream Suite. Of these, 35% are dedicated to research and development, 10% to marketing and sales, 35% to professional services and 20% to support.
Sapiens had one new customer win for Stream Suite in North America from 2016 through the first quarter of 2017 — a Tier 3 insurer that licensed its billing module.
Stream Suite offers strong support for business rules and workflow across the platform through full integration of the Drools rule engine and Activiti for workflow.
Stream Claims includes advanced catastrophe management capabilities such as catastrophe analytics and flexible support for automated assignment (and unassignment) of catastrophe claims.
The Stream Suite offers strong support for integration, with the use of the Mule ESB and more than 1,700 web services.
Sapiens has not yet implemented Stream Suite in production as a core platform. To date, it has operated as a traditional set of core systems. Production experience has been limited to its core modules for policy, billing and claims. It has no customers in production with its portal and mobile solutions or data solutions.
Stream policy is a refresh of the earlier Policy Star solution, and StoneRiver is still completing this process. For example, the product configuration tool interface is still using an older technology.
Sales execution for Stream Suite has been low due to some gaps (such as lack of production experience with portal and mobile offerings) and the vendor's focus on refreshing core modules. Stream Suite had less than a 1% share of new customer wins during 2016 through 1Q17.
We review and adjust our inclusion criteria for Magic Quadrants as markets change. As a result of these adjustments, the mix of vendors in any Magic Quadrant may change over time. A vendor's appearance in a Magic Quadrant one year and not the next does not necessarily indicate that we have changed our opinion of that vendor. It may be a reflection of a change in the market and, therefore, changed evaluation criteria, or of a change of focus by that vendor.
This Magic Quadrant is an update of the "Magic Quadrant for Property and Casualty Insurance Policy Management Modules, North America." With this update, we have revised the inclusion criteria and expanded the functional scope to include core processing modules (such as policy, billing and claims management modules) and noncore processing solutions (such as mobile and portal solutions, data platforms, and BI and analytics packages). Gartner has also retired the "Magic Quadrant for Property and Casualty Insurance Claims Management Modules."
Seven solutions that were not a part of the prior "Magic Quadrant for Property and Casualty Insurance Policy Management Modules, North America" have been added to this research:
Adaptik (Adaptik Suite)
EIS Group (EIS Core Insurance Suite)
Oceanwide, an Insurity company (Oceanwide Bridge Insurance Software Suite)
Sapiens (Stingray System)
StoneRiver (Stream Suite)
Instec was profiled in the "Magic Quadrant for Property and Casualty Insurance Policy Management Modules, North America," but it did not meet the inclusion criteria for this Magic Quadrant for P&C Core Platforms, North America. Instec is a policy management module vendor that does not offer a full P&C core platform. Therefore, it has been excluded from this assessment.
To qualify for inclusion, vendors need to offer a P&C core platform that:
Includes modules that provide end-to-end policy, billing and claims management functionality capable of supporting P&C insurance for a range of personal and commercial lines of business
Includes at least two of the three following elements:
Portals and apps for customers, agents or suppliers
A data repository
Reporting and analytics
Has at least five North American P&C insurers in production with policy, billing or claims modules as of 31 December 2016. These insurers must be direct customers — that is, not supported indirectly via business process outsourcing (BPO) operations. Each insurer is counted once, even if there are multiple deployments for different LOBs within a single company.
Supports in production with insurer customers at least five of the following personal or commercial LOBs:
Personal liability (including umbrella)
Commercial package policy
Business owner's policy
Commercial general liability
Has at least two new insurer customer wins for policy, billing or claims (excluding upgrades or expansion within existing customers) over calendar years for 2015 and 2016.
Not included in this Magic Quadrant are solutions that focus exclusively on a single LOB (for example, offering support only for workers' compensation or certain specialty lines, with no planned expansion into other LOBs).
This Magic Quadrant is specific to North America and does not apply to other regions.
P&C insurance CIOs and their business peers are increasingly focused on speed to deployment and the ability to support new business models and emerging technologies. They seek core platform vendors that offer mature and extendable solutions with comprehensive functionality and out-of-the box-content. A proven track record of supporting relevant LOBs and a proven ability to support rapid implementations are essential. Given the significant consolidation this market has experienced, overall competitiveness as measured by sales execution is also key. To reflect these market realities, Gartner has more heavily weighted the evaluation criteria under Ability to Execute that deal with product or service offerings, sales execution, market responsiveness and customer experience.
Product or Service
Source: Gartner (September 2017)
Given the disruption the insurance industry is experiencing, it is not enough to be a provider of modern core systems. A P&C core platform vendor must not only demonstrate a high degree of business knowledge and relevant content across a range of LOBs, but also show P&C insurance IT and business leaders how they provide a broader platform for innovation for future digital business initiatives. Given these demands, Gartner has placed a heavier emphasis on the evaluation criteria under Completeness of Vision that cover market understanding, offering (product) strategy, vertical/industry strategy and innovation.
Offering (Product) Strategy
Source: Gartner (September 2017)
Gartner has identified two vendors as Leaders in this Magic Quadrant: Duck Creek and Guidewire (InsuranceSuite). Each offers strong core system functionality, mobile and portal and data platform capabilities, and a broad range of LOB experience and operational capabilities. Each also has resources and partners that support operations outside North America.
Gartner has classified two vendors as Challengers: BriteCore and Guidewire (InsuranceNow). Both vendors offer cloud-based solutions with comprehensive core system capabilities that can be deployed rapidly. The breadth of their platform capabilities and LOB coverage is narrower than the leaders, but both have been highly successful among smaller, Tier 3 insurers.
Gartner has classified three vendors as Visionaries: EIS Group, Insurity, and Majesco. These vendors offer strong core system functionality and broader platform capabilities, and have demonstrated a flair for innovation. Their level of execution is lower due to factors such as lower customer wins and more limited production experience in certain segments, but they demonstrate vision and strong potential.
Gartner has classified eight vendors as Niche Players: Adaptik, CodeObjects, DXC Technology, Insuresoft, Oceanwide, OneShield, Sapiens and StoneRiver. Each vendor has key strengths that make it a strong candidate in certain market segments. Each vendor also has limitations (such as LOB coverage, breadth of functional coverage or production experience, or experience with only certain tiers of insurers) that make it less suitable for a broader range of opportunities.
Each vendor profiled in this Magic Quadrant markets a platform with a comprehensive set of core modules for policy, billing and claims management, along with an expanded set of capabilities supporting the customer and agent experience via digital channels, data management and analytics. Many capabilities (in particular traditional core system capabilities) are similar, but there are key differences:
Range of LOBs and product types they have experience supporting
Actual production experience with all core modules and related components (such as rating engines or underwriting workstations)
Full availability and actual production experience with platform capabilities outside the core modules, such as mobile and portal capabilities, data management, and BI and analytics
Size and capabilities of their organizations and partner ecosystems
Support for and actual experience with cloud-based deployments
Geographical reach of the vendor and its partner ecosystem
Gartner has observed an increasing level of interest among North American insurers and global insurers in P&C core platform vendors that can support expansion into new regions or operations across multiple regions, including North America. Multiregional support is an area in which nearly all vendors profiled in this Magic Quadrant are investing to further develop their solutions — primarily by building or enhancing support for multiple languages or currencies. However, most of these vendors have experience operating only in North America. Gartner has highlighted in their individual profiles the subset of vendors with customers in production and new customer wins in regions outside North America.
This Magic Quadrant for P&C core platforms is an update to the "Magic Quadrant for Property and Casualty Insurance Policy Management Modules, North America," published in January 2016. The scope of this research has expanded beyond the policy management module to the core platform because Gartner has observed a strong shift in buyer preferences toward vendors that offer broader capabilities, which include customer experience, partner management and data management capabilities. Core modules for policy, billing and claims have become increasingly commoditized; buyer decisions are resting more heavily on breadth of platform capabilities and the strength of noncore functionality.
This Magic Quadrant is not a comprehensive overview of all vendors that actively market P&C core systems. It focuses on vendors that have positioned themselves to provide a broader platform with core modules, portal and mobile capabilities for policyholders, agents and other external stakeholders, a data repository, and a BI and analytics package. The platforms are designed to meet the needs of Tier 1, Tier 2 and midsize Tier 3 multiline P&C insurers. The vendors profiled in this Magic Quadrant are viable P&C core platform candidates with at least two core module wins over 2015 and 2016, a minimum of five insurers in production, and a minimum of five standard personal or commercial LOBs in production.
Total new customer wins in North America for P&C core platforms among the 15 vendors profiled in this Magic Quadrant are at historically high levels. The vendors reported a moderate 4% increase in 2016 over 2015 for new wins for core policy, billing and claims management modules. Wins for portal and mobile solutions saw a similar increase in 2016 of 5% over 2015. Data solutions were an exception — the number of new data repository and BI and analytics package licenses dropped by 4% in 2016. Results from the first quarter of 2017 suggest that activity is slowing, but a single quarter does not provide a reliable indicator for an entire year.
Although there is a clearly dominant vendor (Guidewire) that secured approximately 30% of the customer wins from 2015 through 1Q17, sales activity is fairly evenly distributed among three other bands of vendors. Three vendors each secured from 8% to 12% of the new customer wins. Seven vendors secured 3% to 7% of new customer wins, while the remaining four vendors secured 2% or less of the new customer wins.
Gartner has observed an impressive shift in the adoption of cloud-based deployment models. Among the new customer wins for platform solutions in 2015, 55% were for cloud-based deployments. This percentage grew in 2016 to 61%. (These percentages are inflated by a larger number of small, cloud-based implementations for Tier 3 insurers; the majority of Tier 1, Tier 2 and large Tier 3 deployments are still on-premises.) Although these percentages alone do not present a full picture, they are a clear indicator of growing acceptance of the cloud for core solutions across a wider range of LOBs and tiers.
In response to these changes in this competitive market, rather than trying to be all things for all buyers, roughly two-thirds of the vendors are narrowing their focus to particular LOBs or market segments where they have stronger position, such as LOBs with a high percentage of program business, smaller insurers or startups with an appetite for hosted deployment, or specialty lines where custom product configuration is key. These shifts in focus are enabling vendors to be more successful, but they complicate the market landscape and make vendor selection more difficult for P&C insurance buyers.
In reviewing this Magic Quadrant, it is inevitable that some buyers will fixate on a leading vendor, or will fixate on the Leaders quadrant, but this could be a potentially serious mistake. Each vendor in this Magic Quadrant is fielding competitive offerings and securing new customers, and each is a strong candidate for insurers in certain tiers and specific LOBs. P&C insurance CIOs should help their IT and business stakeholders guard against a fixation on a particular quadrant and, instead, develop an understanding of the strengths and particular specialization of each vendor. Depending on the specific market segment and business requirements, any of these P&C core platform vendors could be a strong candidate.
Tier 1: More than $5 billion in DWP
Tier 2: $1 billion to $5 billion in DWP
Tier 3: Less than $1 billion in DWP
Product/Service: Core goods and services offered by the vendor for the defined market. This includes current product/service capabilities, quality, feature sets, skills and so on, whether offered natively or through OEM agreements/partnerships as defined in the market definition and detailed in the subcriteria.
Overall Viability: Viability includes an assessment of the overall organization's financial health, the financial and practical success of the business unit, and the likelihood that the individual business unit will continue investing in the product, will continue offering the product and will advance the state of the art within the organization's portfolio of products.
Sales Execution/Pricing: The vendor's capabilities in all presales activities and the structure that supports them. This includes deal management, pricing and negotiation, presales support, and the overall effectiveness of the sales channel.
Market Responsiveness/Record: Ability to respond, change direction, be flexible and achieve competitive success as opportunities develop, competitors act, customer needs evolve and market dynamics change. This criterion also considers the vendor's history of responsiveness.
Marketing Execution: The clarity, quality, creativity and efficacy of programs designed to deliver the organization's message to influence the market, promote the brand and business, increase awareness of the products, and establish a positive identification with the product/brand and organization in the minds of buyers. This "mind share" can be driven by a combination of publicity, promotional initiatives, thought leadership, word of mouth and sales activities.
Customer Experience: Relationships, products and services/programs that enable clients to be successful with the products evaluated. Specifically, this includes the ways customers receive technical support or account support. This can also include ancillary tools, customer support programs (and the quality thereof), availability of user groups, service-level agreements and so on.
Operations: The ability of the organization to meet its goals and commitments. Factors include the quality of the organizational structure, including skills, experiences, programs, systems and other vehicles that enable the organization to operate effectively and efficiently on an ongoing basis.
Market Understanding: Ability of the vendor to understand buyers' wants and needs and to translate those into products and services. Vendors that show the highest degree of vision listen to and understand buyers' wants and needs, and can shape or enhance those with their added vision.
Marketing Strategy: A clear, differentiated set of messages consistently communicated throughout the organization and externalized through the website, advertising, customer programs and positioning statements.
Sales Strategy: The strategy for selling products that uses the appropriate network of direct and indirect sales, marketing, service, and communication affiliates that extend the scope and depth of market reach, skills, expertise, technologies, services and the customer base.
Offering (Product) Strategy: The vendor's approach to product development and delivery that emphasizes differentiation, functionality, methodology and feature sets as they map to current and future requirements.
Business Model: The soundness and logic of the vendor's underlying business proposition.
Vertical/Industry Strategy: The vendor's strategy to direct resources, skills and offerings to meet the specific needs of individual market segments, including vertical markets.
Innovation: Direct, related, complementary and synergistic layouts of resources, expertise or capital for investment, consolidation, defensive or pre-emptive purposes.
Geographic Strategy: The vendor's strategy to direct resources, skills and offerings to meet the specific needs of geographies outside the "home" or native geography, either directly or through partners, channels and subsidiaries as appropriate for that geography and market.