Insurance Software Development Market - Performance During Recession of 2008-2011
The insurance software development industry proved to be resilient during the recession. Market demand for insurance software had a slight rise the year after the recession began. Still, there were dynamic changes in the industry. Some insurance software vendors were acquired by bigger players, leading to consolidations in insurance software services. During the last two years of the recession, outlook in the industry seemed to be positive as investments in insurance software startups grew.
Recession Market Statistics
- Despite the recession beginning in 2008, the following year saw a 3.7% rise in the market for insurance software as a result of insurers investing in technology.
- In 2009, insurance software vendors saw an increase in revenue from 2008.
Larger Companies Acquire Insurance Software Developers
- During the 2008–2011 recession, large software companies made several acquisitions of smaller insurance software companies.
- Around June 2008, Oracle bought two insurance software development companies: Skywire Software LLC and AdminServer. They were purchased for less than $150 million and less than $100 million, respectively.
- Still, out of twenty (20) companies interested in acquiring Skywire before the recession, only Oracle showed interest after the recession hit.
- In August 2011, Accenture acquired Duck Creek Technologies, an insurance software development company. The goal of the acquisition was to enhance and support the services that Accenture provides property and casualty insurers.
- German insurance software developer FJA purchased COR AG in 2009 FJA's goal was to develop applications to support the needs of life insurers.
Increase in Funding Insurance Technology
- In 2010, insurance technology startups received $85.7 million in funding from 9 deals.
- In 2011, this grew by around 37% with $117.5 million in funding from 15 deals.
Despite exhaustive research through market reports, industry reports, news archives, press release aggregators, and academic research, we could not find 2008–2011 market performance data specifically about life insurance software development companies. The only available data we could find was about insurance software development companies in general. It's likely that data specific to life insurance software development wasn't being tracked or made public during this period or is a very niche category that is not covered by normal media outlets. Some potential sources are also behind paywall.
To compute the percentage growth in investment in insurance technology startups, we subtracted the 2010 figure ($85.7 million) from the 2011 figure ($117.5 million), then divided the difference ($31.8 million) by the 2010 figure. The result was 0.37. We then multiplied the result by 100 to get the percentage.