How do insurance providers develop an agile IT infrastructure?

Insurers have always faced the challenge of taking products and solutions to market faster and doing so at lower cost. The sources of this challenge are not new – changing partner and customer expectations, increased and new competition and demanding regulators with perhaps the addition of the current financial climate.

Insurers have risen to each challenge, offering new ways to interact with their customers, offering new products and tracking their processes against new requirements. However, warning signs loom as insurers are increasingly finding that each of these solutions involve adding something new, encumbering their infrastructure with the latest systems, applications and integrations. Insurers already suffer from heterogeneous and complex IT landscapes and many are in the throes of large, costly programs designed to simplify and reduce costs.

The challenge today is a little more specific from those in the past: How can an insurer increase in agility, speed to market and flexibility while keeping the support and maintenance costs manageable?

Insurers are increasingly realising the benefits of a Software as a Service (SaaS) approach for some parts of their IT landscape. The promise of being up and running on an out of the box solution can be very appealing for activities that don’t differentiate the insurer or are well understood. While these solutions continue to be additive, they don’t increase the load on the IT infrastructure team beyond the due diligence exercise. However, many of the areas that need the greatest speed to market are differentiating and require customisation – how can insurers achieve that without increasing complexity?

Is Cloud the Answer?
There has been much discussion about cloud and how this is changing the way start-ups and businesses deal with their IT infrastructure. Insurers exist in a heavily regulated environment and are rightly hesitant to jump on the latest technology fad to solve their problems. However, dismissing the developments in cloud and SaaS propositions altogether for their core operations may be throwing the baby out with the bath water, along with possibly the bath as well.

There is value in considering cloud-thinking or a cloud style approach to problem-solving when considering the insurer’s infrastructure. Central to enabling cloud is simplifying, standardising and above all automating activities with IT infrastructure. Once the common activities one needs to do are automated this frees up costly team members and time to look at other problems. Through automation one can keep adding new applications and solutions to the IT landscape with a lower impact on support and maintenance costs, enabling an insurer to remain flexible, agile and keep their costs manageable.

It is time for the IT department to look internally and apply the same automation and efficiency thinking of their business counterparts to their own operations. Regardless of an insurer’s position on cloud, there is value in applying cloud-thinking. Consider how automation and simplification can increase predictability, supportability and quality in IT Operations. If appropriate, take that learning and move some services to the cloud.

In practice this approach doesn’t simplify the IT landscape and move everything to one “cloud” way of doing things. Rather it accepts the insurance industries need for complexity, for flexibility in approach and seeks to enable a fast and cost efficient approach to deliver it.


A golden day for insurance: Celent 2016 Model Insurer winners

In the historic Museum of American Finance, surrounded by golden exhibits including gold bars, a gold Monopoly game and even a gold toilet(!), the 2016 Celent Model Insurers were announced yesterday.  Part of our annual Innovation and Insight Day, we had over 150 insurance professionals in attendance (and over 300 in total), it was a great day for networking, idea sharing, learning about award winning initiatives and hearing inspiring speakers talk about the future of financial services. 

Yaron Ben-Zvi, CEO and co-founder of Haven Life, was the Model Insurer key note speaker. He discussed how Haven is using technology to reach a younger, digital-savvy customer with a life insurance experience that meets their expectations. He spoke about the journey from ideation to reality for their term insurance products which can be purchased online in only 20 minutes. He encouraged the audience to “think big but start small” and to apply the learnings along the way.

The Haven Life presentation was followed by the main event, the announcement of the 2016 Model Insurer winners. Every year, Celent recognizes the effective use of technology projects in five categories across multiple business functions.  We produced our annual Model Insurer Case Study report which clients may download here.  This year there were fifteen insurers recognized including Zurich Insurance, the Model Insurer of the Year.  Here are the winners: 

Model Insurer of the Year   

Zurich Insurance: Zurich developed Zurich Risk Panorama, an app that allows market-facing employees to navigate through Zurich’s large volumes of data, tools and capabilities in only a few clicks to offer customers a succinct overview of how to make their business more resilient. Zurich Risk Panorama provides dashboards that collate the knowledge, expertise and insights of Zurich experts via the data presented.

Data Mastery & Analytics

Asteron Life: Asteron Life created a new approach to underwriting audits called End-to-End Insights. It provides a portfolio level overview of risk management, creates the ability to identify trends, opportunities and pain points in real-time and identifies inefficiencies and inconsistencies in the underwriting process. 

Celina Insurance Group: Celina wanted to appoint agents in underdeveloped areas. To find areas with the highest potential for success, they created an analytics based agency prospecting tool. Using machine learning, multiple models were developed that scored over 4,000 zip codes to identify the best locations.

Farm Bureau Financial Services: FBFS decoupled its infrastructure by replacing point to point integration patterns with hub and spoke architecture. They utilized the ACORD Reference Architecture Data Model and developed near real time event-based messages.

Innovation and Emerging Technologies

Desjardins General Insurance Group: Ajusto, a smart phone mobile app for telematics auto insurance, was launched by Desjardins in March 2015. Driving is scored based on four criteria. The cumulative score can be converted into savings on the auto insurance premium at renewal.

John Hancock Financial Services: John Hancock developed the John Hancock Vitality solution. As part of the program, John Hancock Vitality members receive personalized health goals. The healthier their lifestyle, the more points they can accumulate to earn valuable rewards and discounts from leading retailers. Additionally, they can save as much as much as 15 percent off their annual premium.

Promutuel Assurance: Promutuel Insurance created a new change management strategy and built a global e-learning application, Campus, which uses a web-based approach that leverages self-service capabilities and gamificaton to make training easier, quicker, less costly and more convenient.

Digital and Omnichannel

Sagicor Life Inc.: Sagicor designed and developed Accelewriting® , an eApp integrated with a rules engine; which uses analytic tools and databases to provide a final underwriting decision within one to two minutes on average for simplified issue products.

Gore Mutual Insurance Company: Gore created uBiz, the first complete ecommerce commercial insurance platform in Canada by leveraging a host of technology advancements to simplify the buying experience of small business customers.

Operational Excellence

Markerstudy Group: Markerstudy implemented the M-Powered IT Transformation Program which created an eco-system of best in class monitoring and infrastructure visualization tools to accelerate cross-functional collaboration and remove key-man dependencies.

Guarantee Insurance Company: In order to focus on their core competency of underwriting and managing a large book of workers compensation business, Guarantee Insurance outsourced its entire IT infrastructure.

Pacific Specialty Insurance Company: Complying with their vision is to become a virtual carrier, meaning all critical business applications will be housed in a cloud-based infrastructure, PSIC implemented their core systems in a cloud while upgrading infrastructure to accommodate growth in bandwidth demands.

Legacy Transformation

GuideOne Insurance: GuideOne undertook a transformation project to reverse declines in its personal lines business. They launched new premier auto, standard auto, and non-standard auto products, as well as home, renter and umbrella products on a new policy administration system and a new agent portal.

Westchester, a Chubb Company: Chubb Solutions Fast Track™, a robust and flexible solution covering core business functionality, was built to support Chubb’s microbusiness unit’s core mission of establishing a “Producer First,” low-touch mindset through speed, accessibility, value, ease-of-use and relationships.

Teachers Life: Teachers Life has achieved a seamless, end-to-end online process for application, underwriting, policy issue and delivery for a variety of life products. Policyholders with a healthy lifestyle and basic financial needs can get coverage fast, in the privacy of their own homes, and pay premiums online in as little as 15 minutes.

The quality of the submissions this year is a clear indication the industry is turning a corner and embracing transformation, digital initiatives, innovation and valuing data analytics.  It is inspiring to see the positive results the insurers have achieved and a pleasure to recognize them as Model Insurers for their best practices in insurance technology.

How about your company? As you read this, are you thinking of an initiative in your company that should be recognized? We are always looking for good examples of the use of technology in insurance. Stay tuned for more information regarding 2017 Model Insurer nominations.  


Robotics, bots and chocolate teapots

Increasingly in operational efficiency and automation circles we’re hearing about bots and robotics. As a software engineer in days past and a recovering enterprise architect I have given up biting my tongue and repeatedly note that, “we have seen it all before.” I’ve written screen scrapers that get code out of screens, written code to drive terminal applications and even hunted around user interfaces to find buttons to press. The early price comparison websites over a decade ago used these techniques to do the comparison. These techniques work for a while but are desperately fragile when someone changes the name of a button, or a screen or a screen flow. However, they can help. I recall a while ago a manager lamenting ‘the solution’ was about as useful as a chocolate teapot. A useful 10 minutes hunting for this video of a chocolate teapot holding boiling water for one whole pot of tea made the point for me. Sometimes all you need is one pot of tea.
Tea poured from a chocolate tea pot

Tea poured from a chocolate tea pot

So it’s not new, some bots may be fragile and with my “efficiency of IT spend” hat on (the one typically worn by enterprise architects) stitching automation together by having software do what people do is an awful solution – but as a pragmatist sometimes it’s good enough. Things have moved on. Rather than a physical machine running this with a ghost apparently operating mouse and keyboard we have virtual machines and monitoring of this is a lot better than it used to be. Further machine learning and artificial intelligence libraries are now getting robust enough to contribute meaningfully smart or learning bots into the mix that can do a bit more than rote button pressing and reading screens. In fact this is all reminiscent of the AI dream of mutli-agent systems and distributed artificial intelligence where autonomous agents collaborated on learning and problem solving tasks amongst other things. The replacement of teams of humans working on tasks with teams of bots directly aligns with this early vision. The way these systems are now stitched together owes much to the recent work on service oriented architecture, component orchestration and modern approaches to monitoring distributed Internet scale applications. For outsourcers it makes a great deal of sense. The legacy systems are controlled and unlikely to change, the benefits are quick and if these bots do break they can have a team looking after many bots across their estate and fix them swiftly. It may not be as elegant as SOA purists would like but it helps them automate and achieve their objectives. The language frustrates me though, albeit bots is better than chocolate teapots. I’ve heard bot referred to as a chunk of code to run, a machine learning model and a virtual machine running the code. I’ve even heard discussion comparing the number staff saved to the number of bots in play – I can well imagine operations leads in the future including bot efficiency in their KPIs. Personally, I’d rather we discussed them for what they are – virtual desktops, screen scraper components, regression models, decision trees, code, bits of SQL were appropriate, etc. rather than bucket them together but perhaps I’m too close to the technology. In short bots may not be a well-defined term but the collection it describes is another useful set of tools, that are becoming increasingly robust, to add to the architects toolkit.

The security breach of the month/week/day – and why you should consider the Cloud

I don’t want to pick on one particular company, but the breach at Anthem hits pretty close to home — our industry is under attack. Should this surprise you? Absolutely not. What is particularly concerning is that these are companies that are spending enormous sums of money to stop these intrusions.   And are still getting hacked. JPMorgan Chase, Home Depot, Target, Michaels. I list these, not just as a reminder, but because I personally was affected by all four breaches. I’m on my third credit card in just over a year because every breach forces a new one. The JPMorgan Chase and the Anthem breaches are different and more onerous. In the Target breach, and others like it, credit cards were compromised. You can close a credit card account. In the recently disclosed Anthem breach — everything was lost. Name, Address, Social Security number, employer, net worth.   In other words, everything to steal your identity. I can’t close my life and open a new one. Is there a purpose to this rant? There is.   First, the technology exists — and is reasonably affordable — to encrypt this data. Is it a big project? Of course. Do you still want me to be your customer? How is it that in 2015 critical data about me is sitting in a data center and not encrypted?   Second, one of the biggest arguments against using applications in the Cloud is that having data in your own data center is more secure. Really? Seems not. I was recently discussing running a Life insurance system in the cloud with the CIO of a larger insurer. They put forth the ‘safer in my shop argument’, so I asked them a simple question: Is your budget for security larger than Google, Amazon or Microsoft (three of the largest Cloud vendors)?   After much thought, he replied that it was not, and our discussion changed paths. So maybe it is time to rethink the importance of your own data center. Beyond just security, is it your core competency to run a data center? Does it bring new revenue into your company to run a data center? Is it cheaper to run your own data center?   I believe the answer to all three is a resounding No. So when you are out looking for new applications and technology, I suggest it may be time, or beyond time, to think differently. Oh, and start asking your personal bank, credit union, insurance company, etc.: is my data encrypted?

On the cusp: regional integration in Asia

It’s 2015, the mid-point of the decade and a good time to start looking at major trends in Asian financial services over the next five to ten years. One of the major themes will be regional integration, which is another way of saying the development of cross-border markets. There are at least two important threads here: the ongoing internationalization of China’s currency, and the development of the ASEAN Economic Community (AEC) in Southeast Asia. RMB internalization is really about the loosening of China’s capital controls and its full-fledged integration into the world economy. And everyone seems to want a piece of this action, including near neighbors such as Singapore who are vying with Hong Kong to be the world’s financial gateway to China. The AEC is well on its way to becoming a reality in 2015, with far-reaching trade agreements designed to facilitate cross-border expansion of dozens of services industries, including financial sectors. While AEC is not grabbing global headlines the way China does, we see increasing interest in Southeast Asia among our FSI and technology vendor clients. From Celent’s point of view, both trends will open significant opportunities across financial services. In banking, common payments platforms and cross-border clearing. In capital markets, cross-border trading platforms for listed and even OTC products. In insurance, the continued development of regional markets. Financial institutions will be challenged to create new business models and technology strategies to extract the opportunities offered by regional integration. It’s the mid-point of the decade, and the beginning of something very big.

What if someone Kickstarted an insurance company?

As analysts in the insurance industry, Celent spends considerable time and effort considering new and improved ways to do business. Much of this emphasis is on technology and where our customers, and the industry, are in their efforts to improve and what still needs to be done. Our industry is evolving and implementing new innovations, particularly focusing on the customer experience, including the web and mobile. Many, if not most, companies are hampered by aging technology in their back-end systems. This is certainly true in the P&C and Health industries and particularly true in the Life industry. Life insurance is inherently a contract that extends over a significant period of time. Therefore, many insurers are using systems that are 20, 30 or even 40 years old. Let’s assume that a system installed in the 1960s does not play well in an Internet connected world. So the question for this post is about disruption. While Kickstarter or other crowdfunding methods are unlikely, it is interesting to think about how an insurance company would be formed and implemented if it was a new company formed today. What would we need to start this mythical company? 1) Would you need any employees? This is the first fundamental question. Many insurers are large employers with a significant investment in people and facilities. If you were starting from scratch, would you hire industry veterans, trying new employees and open up a big office? Possibly not. Once you have capital, virtually every other function could be outsourced. There are solid Sales and Marketing companies with licensed agents to service both web applications and call centers. Reputable Third Party Administrators exist that can handle every operations functions. Good actuarial firms can be contracted to design the product. Reinsurers can not only take risk, but in many cases provide Underwriting guidelines (and technology). Financial management requires a solid accounting firm. The list goes on, but it is an intriguing question. Building a virtual company has never been easier. 2) Would you need any agents? Again, possibly not. Starting from scratch, the company could be entirely on-line, backed up by a call center. As mentioned above, there are many companies that can provide this service. Of course, they’re still agents, just not the traditional independent or captive that sells locally. 3) What about capital? This might be the biggest barrier for entry. Money isn’t as available as it once was and, notwithstanding the title of the post, crowd funding isn’t designed to raise the amount of money required for an insurer. The purpose of this post is not to suggest that the reader run out and start a company, although let us know if you do. It is more for the existing insurers that are not able to be as nimble and change with the marketplace as quickly as they might need. Even the largest brick and mortar insurer can innovate. There are companies, large and small, in our industry that are truly innovating. If this post intrigued you, or even if it didn’t, but you do not have any formal innovation process, then perhaps you should. Your competitors are staffing dedicated innovation labs to stretch themselves, and the industry. They’re trying new things and failing fast. What new idea will be born in your company today?

Celent’s first UK CIO Roundtable: The future of technology in the workplace and engaging suppliers in innovation

Celent recently held its first UK CIO Agenda Roundtable.   The aim of this event was to bring together senior IT executives from across the UK insurance industry to debate shared topics of interest.  The event was hosted by a CIO’s at their premises, and the prize for hosting was that the CIO got to choose the topics for discussion – and what great topics were chosen:
  • The future of technology in the workplace
  • Engaging suppliers in innovation
The debate was lively with open and frank contribution from all parties.   Unfortunately, as the event was run on a ‘Chatham House Rules’ convention, I am not able to share the details of the debate. (For those of you unfamiliar with British History, Chatham House was one of the UK’s main establishments for military code breaking where all discussions where not shared outside of the house).  So, instead, here’s a quick summary of the main themes: Topic #1: The future of technology in the workplace
  • Enabling new user driven technologies in the workplace is still largely a reactive exercise.  
  • However, the extent of tablet computing, BYOD, use of social networking for defined business use, and innovative uses of collaborative technologies is growing (such as tablet based video conferencing, web chat, IM, corporate networking, etc)  – extending beyond the executive suite to front-line staff.
  • As the CIO is ultimately responsible for all data and use of IT assets within the firm, security remains a critical concern.  
  • The main challenges faced by CIOs are: (1) Educating the business around the risks, (2) Working with suppliers to enable the changes required to open up new workplace technologies (owing to being tied into long-term agreements), and (3) Securing the investment.
Topic #2: Engaging suppliers in innovation
  • Overall, insurers recognize that their suppliers are a critical partner in helping them to innovate and welcome their contributions.
  • Some insurers have made use of their supplier’s capabilities for innovation (including facilities such as Innovation Labs and bespoke programmes).  Although these facilities were appreciated by insurers, few had found them to be hugely successful in supporting the innovation agenda with the business.
  • The main challenge highlighted by CIOs with long-term multi-year outsourcing partners was perceived to be contractual.  Innovation objectives are often negotiated at the procurement stage of a long-term outsourcing contract and focused more on delivering long-term supplier productivity rather than short-term market-facing business goals, which can change from year-to-year and flex with changes in technology requiring an agile response.    
  • Furthermore, in global contracts, it was felt that local supplier teams are not always incentivised to innovate with their local client firms.  It was felt that behaviours follow their local incentive plans targeted towards delivery and cost, as opposed to innovation.
  • Where insurers have experienced success, it was observed that this was with either smaller suppliers on pilot programmes (where agility, rapid results, close business co-operation and shorter contracts are often exercised), and when local supplier teams have been ring-fenced and embedded into the client teams.
Both of these topics provide a rich seam for future Celent research.  It was clear that these topics feature high on the agenda of many CIOs, where the need to be seen to lead the business around the technology agenda is great.   So, watch this space.

A holiday gift from Celent – Top 10 searched for terms and links to reports

Last year we offered a Christmas Carol themed post summarising some thoughts on the past, present and future. This time around I figured I’d go for one of the end of year top ten style posts that pop up as folks take a moment to look back at the year. So here I present a view on the top 10 searches insurance folks made on the Celent web site. 10. Model Insurer (Click on the words to do the search) In at number 10 are explicit searches for the model insurer series of reports. We’re still working hard on this years but here’s some links to last years and the one the year before. This year we’ll be holding the Model Insurer event in Boston along with our insight and innovation day. The model insurer reports can’t be beaten for offering a view of successful investment in change and technology across the insurance industry. Also take a look at the Model Insurer Asia report and 2012 event. 9. Fraud Sadly as pressure increases on the financial system, on wallets everywhere then the propensity for fraud increases. 2011 has seen an unprecedented rise in ill-feeling towards the financial services sector as a whole so it’s no wonder that fraud is on everyone’s agenda. Look out for work by Donald Light and Nicolas Michellod in 2012 on modern fraud systems across the globe.   8. CRM or Customer Relationship Management Insurers have made great strides in moving from policy and agreement centric thinking to a more rounded view of the customer. With ever increasing ways of reaching customers and intermediaries, of simply transacting business this focus on technology to support the customer relationship is clearly still a focus. 7. Claims Clearly a key focus for any insurer, from the systems supporting claims to the latest trends in claims analysis. In 2011 Celent examined the impact social media was having on claims and how insurers are interacting with claimants. We also looked at location intelligence solutions and below are just some of the reports looking at various angles of this key function. Look out in 2012 for the XCelent reports on claims system vendors.   6. Outsourcing 2011 has seen a more pragmatic approach to outsourcing in the insurance industry globally. Strategic outsourcing is still a key tool for any large organisation and this is reflected in the term appearing in our top ten. The CIO survey series of reports (which will be refreshed in the new year) offer insight into CIO’s views on outsourcing globally.   5. Policy Administration Ah the big core system question. What was interesting to me was this wasn’t number one, still number 5 is pretty high up the list. Searches in this area were looking for advice on the core systems themselves, building a case for them as well as general trends. This year we published the 2011 reports on policy administration systems around the globe, each offering a different perspective on what’s available as well as what’s required.   4. IT Spending In at number 4 is IT Spending – how are folks splitting their hard earned currency between projects? A key question on the minds of CIOs and others. A key insight into this is offered in the CIO interview series of reports as well as our emerging technology report – aimed at identifying technology gaining interest and investment from the insurance industry – take a look.   3. Asia – or rather searches for India, China and Japan A significant number of searches were for specific countries, the three top countries were India, China and Japan. Asia is a very diverse market and there is a great deal of opportunity in the region, not only financially but also in learning how insurance problems are being solved in these very different markets. Personally, I find one of the great things about working for a global company like Celent is the breadth of view it affords.   2. Social Number two in our list is social, social media and social networks. Technology is helping people to interact and changing the way they communicate. Customers, agents and members of insurers staff all expect very different things from an organisation now in a Twitter and Facebook world than just 10 short years ago. In addition, the relationship between the insurance industry and the vendors and service providers supporting it is changing. In all this newly collected and aggregated information there lies privacy and brand-busting dragons but also great opportunity for those intrepid enough to sail the social seas.   1. Mobile I recently tried going around London for the day without my phone – it was hell! The debacle this year regarding the Blackberry outage created a wave of such feelings, although raised some counter blog posts as journalists recounted how they spent more quality time with their family without answer emails. Regardless of for better or worse, humankind has wed itself firmly to being constantly connected through mobile devices. This is a global phenomenon from geeks seeking the latest 4G android handset, executives and music lovers with their iphones or Kenyan farmers with simpler phones, mobile has changed the we communicate, interact with technology and each other and will continue to do so – the insurance industry is still feeling the impact and in many cases still leading the charge in changing peoples lives for the better through mobile technology.   So there it is, a top 10 for you. I haven’t included links to the webinars, peer networking events and other events through the year but the links to each of the search terms will provide you with those. It’s been a phenomenal year of challenges, change and interesting times. Have a Merry Christmas, a Happy New Year or indeed just a great season – depending on what you’re celebrating this Winter. We look forward to working with you in the new year and beyond. Oo, look, I wrote an end of 2011 post without mentioning the Euro crisis – oops…

IT Professionalism in the financial services industry

Before working in insurance I worked in other sectors where it was common to quote the number of certified or accredited engineers working on a project. Usually these were mixed discipline projects involving mechanical, electrical and software engineers, but having chartered engineer status was an advantage regardless of discipline. Also any relevant certifications were highly sought after too. My experience of the UK financial services industry is that such accreditations, certifications and recognition at a professional level are sought after only at an operations level. Here ITIL certification and relevant vendor certifications are king and rightly so. Chartered status is gaining some ground but is less well regarded in financial services than in other industries. In the developer, architect and IT strategy community there is much less clarity on what certifications, skills and professional status really means. I personally feel that these disciplines are less well defined and harder to examine against. Not to say that they are more important than the other disciplines, but perhaps they are less well understood. ITIL has something to offer in the IT strategy space, TOGAF is of use to architects of a variety of disciplines and there are various platform and vendor specific certifications that could help across all the disciplines. There must of course be balance. Certification schemes and membership of professional organisations that come at a cost to the industry must bring clear value. I think that overall IT professionals in the insurance industry that I speak with are naturally pragmatic and cost sensitive. Now that the role of the financial services industry in the financial crisis and the ongoing Euro crisis is bringing a spotlight on the industry, perhaps there is value in all the supporting disciplines in reflecting on what professionalism means, what is IT professionalism, how it can be nurtured, measured, grown and how it can contribute to the industry we support.

Key European GI Policy Admin Report published

The European Insurance team has been working hard over the Spring and Summer to produce one of our key reports Policy Administration Systems for General Insurers in Europe 2011. It’s a topic of great interest to insurers wanting to replace their core underwriting system, and vendors wanting to have a view of the competitive landscape. This report uses Celent’s ABCD vendor view, which is a standard representation of a vendor marketplace designed to show at a glance the relative positions of each vendor in four categories: Advanced technology, Breadth of functionality, Customer base, and Depth of client services. The report also has the first four PAS systems XCelent Awards for Technology, Functionality, Customer Base, and Service. Since the first report in 2005, activity level has remained high among both insurers and policy administration system vendors. In the two years from January 2009 to January 2011, over 130 insurers had licensed a new policy administration system. Since 2007, the UK market has seen seven new entrants primarily from the United States. This adds to an already crowded space. And of these vendors, most (50%) are small with less than 10 clients and under $10 million in annual revenue. So the vendor market remains fragmented and challenging for the insurer buyer to navigate. Recent acquisition announcements of Accenture/Duck Creek and Sapiens and IDIT are not surprising. We can expect further consolidation in a tough market. Look out for the upcoming European PAS deal trends report which will explore this trend in more detail.