MGAs and Smaller Carriers Drive Growth in Core System Purchases
By Tom Benton, ReSource Pro —
At ReSource Pro, we talk a lot about digital transformation as an enabler of business growth. This type of enterprise-wide transformation relies on core systems, like policy, billing, and claims solutions; these systems work together to help insurance companies improve efficiency, profitability, and customer experiences. Carriers and MGAs recognize that true transformation requires a strong foundation of modern policy, billing, and claims systems. Now, recent ReSource Pro research indicates that the demand for these upgrades remains strong.
Our new research report delves into core systems transactions completed in 2023 by 18 of the leading solution providers in the market for both carrier and MGA buyers. The analysis of last year’s deals reveals a steady market, with growth in sales among MGAs. This growth was not only from a slight increase in MGA sales by core systems designed and built for insurance carriers but also from strong sales numbers for solutions designed and sold only to MGAs.
In 2023, there was also an uptick in Tier 2 deals, continuing a years-long trend of more core system purchases within this category of buyers. This surge can be partially attributed to more carriers transitioning into this bracket via mergers, acquisitions, or expanding their lines of business. But what’s clear across tiers is that leading insurance companies – both carriers and MGAs – are investing in core systems to solve issues with market responsiveness and customer servicing.
Find more insights in our recently released report, “2023 P&C Core Systems Purchasing Trends”; advisory clients can access the report here. Please contact the report author, Tom Benton, if you are interested in a more in-depth conversation on our core deals research.
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About ReSource Pro
ReSource Pro brings integrated operational solutions to insurance organizations to improve growth, profitability and insurance outcomes. Headquartered in New York, ReSource Pro’s global service centers address client operational needs around the clock. Recognized as an industry thought leader and listed as one of Inc. 5000 Fastest Growing Private Companies annually since 2009, the company is renowned for its focus on innovation, service excellence and trusted partnerships, and its unique productivity platform for insurance operations. More than 5,000 ReSource Pro employees provide dedicated support to hundreds of insurance organizations, consistently achieving a +97% client retention rate over a decade. For more information, visit www.resourcepro.com.
SOURCE: Strategy Meets Action (SMA)
