Guidewire Software, Inc. (GWRE - Free Report) announced that the company’s InsuranceSuite, Rating Management and Client Data Management, have recently been selected by Ontario, Canada-based agri-business mutual insurer, Trillium Mutual Insurance Company.
The solutions are designed to aid insurers with streamlined claim-management processes, enabling them to bolster operational efficiencies, with enhanced policy administration, underwriting, claims, billing and rating management capabilities.
Moreover, Trillium Mutual opted for VendorEngage and ProducerEngage to enhance customer service with a simplified, omnichannel digital experience. The insurer also aims to implement InfoCenter and DataHub to digitally transform its business intelligence and data-management systems.
Notably, InsuranceSuite aimed at the property and casualty (P&C) insurance industry, enables risk reduction by facilitating higher productivity, accelerating speed to market, digital engagement and simplifying IT infrastructure.
InsuranceSuite aids insurers to streamline claim-management processes, which, in turn, enables them to bolster operational efficiencies.
We believe that the rapid adoption of Guidewire’s solutions will aid the company in bolstering subscription revenues, consequently enabling it to expand the total addressable market or TAM.
Factors Driving Adoption of InsuranceSuite
Guidewire’s solutions enable P&C insurers to expand business with data-driven decision making and improve customer engagement. The company is improving the scope of its InsuranceSuite Cloud via acquisitions and product enhancements. This favors its prospects as the P&C industry is digitally transforming and embracing cloud-based solutions over traditional on-premise offerings.
Guidewire’s cloud-based subscription products are witnessing traction as insurers are increasingly looking to digitally transform their business processes. Moreover, the growing proliferation of Guidewire across the Canadian P&C industry is a key catalyst.
The company has been focused on enhancing the Guidewire Cloud platform with new capabilities, including digital frameworks, automation, tooling and other cloud services, and leverage Guidewire data platform. The latest functionalities are anticipated to drive the adoption of its InsuranceSuite.
Moreover, the company increased investments to enhance insurance software products via collaborations with leading on-demand cloud infrastructure vendors, including Amazon’s (AMZN - Free Report) cloud computing platform, Amazon Web Services (AWS) and Microsoft (MSFT - Free Report) Azure.
The company’s initiatives to enhance offerings via product enhancements, inorganic strategies, and collaborations and partnership programs are enabling it to expand clientele.
Notably, per Technavio data, the global Software-as-a-Service (SaaS) market is expected to witness a CAGR of more than 9% between 2019 and 2023. This is expected to favor the company’s growth prospects.
Further, expanding the Guidewire PartnerConnect program is enabling it to strategically expand business.
Guidewire’s acquisition strategies aimed at strengthening InsuranceSuite remain key catalysts. The acquisition of ISCS (now called Insurance Now), FirstBest (now called Guidewire Underwriting Management) and EagleEye Analytics (now known as Guidewire Predictive Analytics) are not only bolstering revenue growth but also aiding it to expand clientele.
Also, the cross-selling of the product suites has increased customer base and revenue generation. Moreover, the acquisition of Cyence (now Guidewire Cyence for Cyber Risk Management), which enables the determination of the economic impact of a cybercrime via a software platform, is enabling Guidewire to secure transaction management processes.
Notably, Optio Group has adopted Guidewire Cyence for Cyber Risk Management to enhance its data warehouse capabilities. Moreover, Guidewire Cyence for Small Business was selected to support profitable small business growth.
Expanding clientele comprises a wide range of customers that utilize multiple components of Guidewire offerings. For instance, Amerisafe (AMSF - Free Report) uses Guidewire Underwriting Management, while Amerisure Mutual Insurance Company and Westfield Insurance have deployed ClaimCenter.
Markedly, prominent insurers, including the likes of Aviva Italy, have selected the company’s InsuranceSuite Cloud to accelerate innovation, maintain technical currency, and empower its employees. Aviva Italy has also selected Guidewire EnterpriseEngage to deliver omni-channel experiences to all its stakeholders.
Also, the incremental adoption of the latest InsuranceSuite 10 and InsuranceSuite Cloud offerings is expected to drive the top line.
Guidewire’s initiatives to enhance offerings via product enhancements, inorganic strategies and collaborations and partnership programs are enabling it to expand clientele. This bodes well for top-line growth over the long haul.
However, increasing investments on buyouts pose integration risks, which remain concerning.
Further, the coronavirus crisis-led macroeconomic weakness might impact renewals from small- and medium-sized insurers. Also, increasing expenditure on product enhancements and marketing initiatives are likely to impede margin expansion, at least in the near term.
Currently, Guidewire carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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