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GWRE Commits $60M to Boost Japan's Insurance With Cloud-Based Systems

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Guidewire Software (GWRE - Free Report) recently announced a $60 million investment over the next five years to expand its operations in Japan. The hefty investment aims to empower Japanese insurers with advanced capabilities by delivering localized, cloud-based core system capabilities that improve agility, ensure compliance and drive profitable growth.

To further engage with the industry, Guidewire will host its annual Insurance Forum on Tuesday, May 13, 2025, at the Ritz-Carlton in Tokyo. This premier event will explore the state of cloud adoption in Japan, share insights on global insurance trends and feature success stories of current Guidewire customers.

GWRE Deepens Presence in Japan

Since entering Japan’s market in 2008, the company has built a strong footprint, now partnering with more than 10 Japanese insurers, including Tier 1 companies. Further strengthening its market dominance, more than 60% of Japan’s insurance gross written premium (GWP) is now processed through Guidewire ClaimCenter, highlighting GWRE’s deep association with the local market.

Building on this strong foundation, Guidewire’s $60 million investment aims to enhance its platform with innovations specifically designed for Japan’s insurance landscape. The initiative is also set to expand Guidewire’s local team and ecosystem, a key step in meeting rising demand for modern, cloud-native core systems.

Understanding the unique challenges faced by Japanese insurers, Guidewire is also rolling out enhancements to PolicyCenter and BillingCenter—two core products within its InsuranceSuite. These updates include policy change reversals, proration and effective time. These features aim to boost operational efficiency, improve customer satisfaction and reduce administrative overhead. In addition, localization efforts are in progress. Japanese insurers can now benefit from native language support, localized documentation and training programs, making it easier for teams to adapt and maximize value from the Guidewire platform.

Going ahead, the company plans to deliver pre-built integrations for personal auto insurance by mid-2026. By 2027, expanded support for homeowner, earthquake and commercial group policies is expected, tailored to address the region’s risk profiles and regulatory complexities.

GWRE Raises View on Cloud Strength

Guidewire is gaining strong momentum with its cloud platform, benefiting from insurers’ growing shift from outdated legacy systems toward modern cloud solutions. The company has strategically expanded its cloud ecosystem, which now includes 26,000 Guidewire-trained professionals across 38 system integrators. 

In the second quarter of fiscal 2025, Guidewire secured 12 new deals—four involving InsuranceSuite Cloud, one for InsuranceNow, and the rest focused on one or two core X Center applications. By continually enhancing its cloud platform with new digital frameworks, automation tools, and cloud services, it is positioning itself for long-term growth in subscription-based offerings.

Recently, the company launched a new cloud platform, Mammoth, with features tailored to transform how insurers manage policies, engage customers and leverage data-driven insights. With a focus on operational efficiency and market responsiveness, Mammoth empowers both personal and commercial lines of business to grow in a rapidly evolving insurance landscape.

Management issued an improved outlook following solid revenue results for the fiscal second quarter. The company now projects total revenues for fiscal 2025 between $1.164 billion and $1.174 billion, up from its prior guidance of $1.155 billion to $1.167 billion. Subscription revenues are now expected to reach $653 million, with combined subscription and support revenues projected at $718 million.

GWRE’s Zacks Rank & Stock Price Performance

Guidewire currently carries a Zacks Rank #3 (Hold). Shares of the company have surged 61.5% in the past year compared with the Zacks Internet - Software industry's rise of 0.4%.

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Stocks to Consider

Some better-ranked stocks from the broader technology space are InterDigital, Inc. (IDCC - Free Report) , Ubiquiti Inc. (UI - Free Report) and CommScope Holding (COMM - Free Report) . IDCC, UI and COMM presently sport a Zacks Rank #1(Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 15%.

Ubiquiti’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 33.3%. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth.

Headquartered in Hickory, NC, CommScope is a premier provider of infrastructure solutions, including wireless and fiber optic solutions, for the core, access and edge layers of communication networks. The company currently operates in three segments — Connectivity and Cable Solutions, Networking, Intelligent Cellular and Security Solutions and Access Network Solutions. It has a long-term growth expectation of 19.37%.

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