Insurance Software Development - Competitive Landscape

Part
01
of three
Part
01

Competitors - Insurance Software Development Market

Five competitors to Management Data & Insurance Administrators, Inc. include Synnex Corporation (Concentrix/GIAS and Genelco Software Solutions), EXLService Holdings (LifePro), Benefitfocus, Majesco and Inspro Technologies Corp.

1. Synnex Corporation (Concentrix/GIAS and Genelco Software Solutions)

  • The link to the Synnex Corporation website can be found here and that for Concentrix in particular can be found here.
  • Synnex Corporation has a market share of 34.53%.

2. EXLService Holdings (LifePro)

  • The link to the website can be found here.
  • EXLService Holdings has a market share of 1.59%.

3. Benefitfocus, Inc.

  • The link to the website can be found here.
  • Benefitfocus has a market share of 0.45%.

4. Majesco

  • The link to the website can be found here.
  • Majesco has a market share of 0.21%.

5. Inspro Technologies Corp

  • The link to the website can be found here.
  • Inspro Technologies has a market share of 0.02%.

Research Strategy

We started our research by explicitly looking for competitors to Management Data & Insurance Administrators, Inc. by market share. We were able to identify Inspro Technologies Corp as one of the competitors, and we were also able to get a list of Inspro Technologies Corp's competitors by market share. Out of the competitors listed, we chose those with the largest market shares who are also insurance software developers and third party administrators that cater to life and annuity insurance companies. The companies that we were able to find are detailed above.
Part
02
of three
Part
02

Competitors - Insurance Software Development Market: The Findings Part One

Among the specified competitors, namely Management Data and Insurance Administrators Inc, Synnex Corporation, and EXL Service Holdings, the Synnex Corporation is the strongest.

Management Data and Insurance Administrators Inc

  • Company Overview: MDI is a US-based company that offers a system called Flexible Insurance Marketing, Management, and Administration System (FIMMAS). The system is "written in a niche development language called APPX, which allows it to be platform-independent."
  • Competitive Positioning/Advantage: The company's support of individual and group products gives FIMMAS a great claim capability for these products. FIMMAS is capable of operating on multiple hardware platforms and mobile devices. It has deployment in numerous North American nations, with both multi-currency and multilingual assistance.
  • Products/Services offered: MDI provides policy administration software and services for insurance companies and banks that offer insurance products. The FIMMAS is the company's main product. It is a full-function, on-line administration system for the support of individual and group life, health, and annuity insurance products.
  • Weaknesses: MDI's small size makes it difficult to take on many clients simultaneously or adapt quickly to the changing demands of insurance customers. Its limited tech partners restrict areas of innovation in FIMMAS. Also, the company has yet to implement variable life or variable universal life products to FIMMAS, and thus, clients find it unappealing within those product lines.
  • APPX operates as a propriety programming language that is not very popular. It may cause challenges for insurers to locate the necessary resources to uphold it.

Synnex Corporation (Concentrix/GIAS and Genelco Software Solutions)

  • Company Overview: Synnex Corporation offers business-to-business services to customers and business partners for the growth and enhancement of their customer-engagement strategies. It is "an industry leader in IT distribution and customer care outsourced services, operating in Technology Solutions and Concentrix."
  • Competitive Positioning/Advantage: Synnex Corporation has a very efficient hybrid model, through which it presents clients with a broad assortment of solutions, along with value-added services.
  • The company's expertise concentrates on technology as well as vertical markets, ''working in collaborative teams to build next-generation solutions where the two intersect.''
  • Synnex's Hyve Solutions business developed a ''new paradigm for scale computing, with purpose-built, large scale data center solutions, integrating hardware, software, and services.''
  • Concentrix is unique in terms of diverse business models, innovation, footprint, expertise, and flexibility. It provides a ''wide range of client-engagement activities, while expertise in target vertical markets includes a variety of proprietary processes and platforms.''
  • Products/Service Offered: SYNNEX provides the IT and consumer electronics sector with suitable technology solutions to help their partners sustainably expand their businesses. Concentrix is a business service company that originated from the business process outsourcing BPO.
  • Weaknesses: Underwriting, as well as reinsurance, modules must have third-party integration as they are typically not included within the base system.
  • Concentrix uses its own software as a business process outsourcer as opposed to being just a pure-play software supplier. Therefore, ''GIAS resource allocation could favor BPO customer support before making enhancements generally available in the software market.''
  • According to Gartner, "the GIAS off-premises deployment option is a hosted managed solution running on private cloud infrastructure," which is an impending concern for CIOs seeking to operate on public cloud infrastructure (e.g., Azure, AWS).
  • Enhancements and upgrades are more intricate when available services implement more than one feature or function and/or multiple data domain than when services administer a sole contained feature, data domain, or function.

EXLService Holdings (LifePro)

  • Company Overview: EXL Service Holdings provides an assortment of services and solutions such as analytics, operations management, and software. The LifePRO solution supports a range of insurance products.
  • Competitive Positioning/Advantage: Its customers are very much involved in LifePRO's direction, ''agreeing on releases and upgrades and shaping its roadmap.''
  • LifePRO remains one of the country's most broadly utilized solutions for policy administration as it has around 45 production clients. Almost all of its clients changed their "business from legacy systems to LifePRO as part of their implementations."
  • The LifePRO user interface for both policyholder and policy servicing represents a notable upgrade over the previous version.
  • Products/Service Offered: The company's LifePRO supports policy administration solution for annuities, life insurance, and health insurance.
  • Weaknesses: When compared to individual L&A offerings, EXL does not have as much group insurance experience, which leads to it being less enticing to CIOs seeking group functionality that is "out-of-the-box."
  • While LifePRO manages pilots operating on public cloud infrastructure, the solution does not have production clients operating on either Azure or AWS. This could restrict its allure to CIOs anticipating a public, containerized solution that is cloud-ready.
  • Changes are challenging to administer, as "portions of LifePRO are still programmed in COBOL." Also, available services utilize multiple functions or features, as well as various data domains, creating challenges in software changes.
  • It also does not support group insurance self-service as well as group broker RFP functionality, which forces CIOs to utilize alternative solutions from third-parties.

The Strongest Competitor

  • The strongest competitor among the three is the Synnex Corporation. In the year 2019, the company was ranked number 158 among the Fortune 200, it is currently listed on the New York Stock Exchange (NYSE: SNX). It is a bigger company than MDI, with more than 10,000 employees.
  • The Synnex Corporation also has an efficient hybrid model, through which it presents clients a broad assortment of solutions, along with value-added services.
  • EXL Service Holdings (LifePro) also has more than 10,000 employees but has a lower market share compared to Synnex. One of Management Data and Insurance Administrators Inc's weaknesses is its small size. It has between 11 and 50 employees. It also has a limited number of tech partners compared to the other two.

Research Strategy

We began our research by looking into the competitors' websites for information on products/services offered. We were able to find a description of the products/services offered by the individual companies. We then proceeded to look for competitive advantages and weaknesses. For Synnex Corporation, some information was available on the company's website, and we looked into news articles and research reports for more insights. To determine how the two competitors stack up against Management Data and Insurance Administrators Inc, we compared the size of the companies, market share, and the range of products/services provided by each company. We found Synnex Corporation to be stronger, followed by EXL Service Holdings (LifePro) and then Management Data and Insurance Administrators Inc.
Part
03
of three
Part
03

Competitors - Insurance Software Development Market: The Findings Part Two

Among the competitors of Management Data and Insurance Adminitrators, Inc. - Benefitfocus, Inc., Majesco, and InsPro Technologies Corp - Majesco is the strongest competitor due to the number of its recognition, unique growing ecosystem, and partnership with IBM. These attributes put Majesco in the best position to help the industry transition to digital insurance 2.0.

Benefitfocus, Inc.

  • Company Overview: Benefitfocus aims at providing not just technology but "peace of mind". The company seeks to end the confusing information and overwhelming options surrounding life's most crucial decisions. Majorly, the company offers solutions to employers, medical carriers, brokers, and partners. This company also has offices in New York, Charleston, and Greenville.
  • Competitive Positioning/Advantage: Benefitfocus "pivoted a strategic transformation" by bringing consumers, brokers, carriers on a unified platform that connects people to the best solutions. The consumer-based platform enables "benefit shopping and engagements 52 weeks of the year". Aside from creating technology, the company has a unique culture. Benefitfocus supports the community through its Benfitfocus program, and this program focuses on three major areas which are "strengthening the community", "providing health and wellness", and empowerment.
  • Products/Services offered: Benefitfocus offers a unique platform called BenefitSaige. This platform powers the services and solutions rendered by the company. The services powered by this platform include analytics, enhancement, and connection.
  • Weaknesses: Benefitfocus relies on a "single technology platform to protect consumers' health, wealth, and lifestyle".

Majesco

  • Company Overview: Majesco is a company with the vision of "where insurance makes life and business easier". The company offers strategic solutions for its partner insurers to deliver "digital business transformation". The "agile, nimble, and lightning-fast" company provides a technology that works in the cloud to help make innovation faster and easier.
  • Competitive Positioning/Advantage: Majesco sees itself as the best in the industry with unmatched expertise, knowledge, and focus. The company boasts of its head start among its competitors, being the first in the industry to move to the cloud. Among its numerous features, Majesco can be found among top insurers and firms providing a vision for the future, a platform for growth, and "speed to implementation, market, and revenue".
  • Products/Services offered: The company's main products and services are cloud-insurer products and digital insurance. Other products and services include P&C software, insurance distribution management software, digital insurance platform, and digital engagement. The unique features of Majesco products and services is its ability to adapt and grow with change.
  • Weaknesses: Majesco has a limited "North American life insurance customer base"; this limits the width of user-defined changes. These changes could be shared as "common capabilities across the entire customer base". Also, Majesco’s Policy for "L&A and Group customer portal and mobile solutions" has not yet been adopted by customers in the North American region.
InsPro Technologies Corp
  • Company Overview: InsPro Technologies Corp is a US-based company located in Philadelphia. The company's core values include integrity, performance, simplicity, and teamwork; all of which help to direct its operations. The primary focus of InsPro Technologies is on InsPro Enterprise. This is "an end-to-end, web-based policy administration system used by insurance carriers".
  • Competitive Positioning/Advantage: The company offers "dynamic insurance solutions" that help carriers provide unique customer service to their clients. InsPro Technologies devotes itself to being an innovative leader in an adaptable market, measuring its success based on the success of its customers and partners. The company prides itself on delivering services that surpass customers' expectations. InsPro Technologies boasts of its simplicity in terms of partnership and its ability to unite towards common goals. With simple methods, InsPro Technologies prides itself on the "exceptional delivery of products".
  • Products/Services offered: InsPro Technologies' main focus is on InsPro Enterprise. This enterprise is a flexible insurance software with a "pre-configured, product-specific template" that allows analysts to perform everyday tasks. This software offers policy administration, product and plan configuration, new business, and underwriting. InsPro Technologies also features end-to-end service offering. This service offers hosting, client engagement, business analysis, implementation, and integration.
  • Weaknesses: The company has an estimated range of 51-200 employees, and this limits the ability to engage in the more demanding tasks and also attend to a large customer base with unique demands.

The Strongest Competitor

  • The strongest competitor among the four companies appears to be Majesco. In 2019, Majesco was recognized by the Aite group as the top "best-in-class" vendor in the "P&C policy and administration report".
  • In 2018 and 2019, Majesco was named a leader by Gartner in the "Magic Quadrant for P&C Core Platforms, North America".
  • With an estimated range of 1,000–5,000 employees, the Majesco company has the edge over its competitors being the first to the cloud. The company prides itself as a visionary for the future recognized as one by Gartner 2019.
  • Despite having a lower market share than Benefitfocus, the company's unique growing ecosystem and partnership with IBM, puts it in the best position to help the industry transition to digital insurance 2.0.

Research Strategy

To carry out this research, the research team started by searching through the competitors' websites for information on products/services offered. This method proved fruitful as we were able to find a description of the products/services provided by the individual companies. We then proceeded to look for competitive advantages and weaknesses. We also looked into news articles and research reports for insights into the perceived weakness of the above companies. To determine how the competitors stacked up against Management Data and Insurance Administrators Inc, we compared their benchmarks, recognition and awards within the industry, market share, and size. We found Majesco to be the strongest of them all.
Sources
Sources

From Part 03