The price of claims management software has increased because of rising demand; however, price growth has been restrained by falling input costs and high competition
Los Angeles, CA (PRWEB) January 06, 2015
Claims management software has a buyer power score of 4.1 out of 5. According to IBISWorld analyst Cameron Roark, this score reflects strong negotiating power stemming from limited price growth and limited supply chain risk. However, moderate switching costs hurt buyer negotiation power.
Buyers benefit from the limited price growth of claims management software. Although demand for claims management software is rising due to the increasing number of Americans that are becoming eligible for a wide range of insurance coverage, the high level of competition and decline of purchase costs keep the price of claims management software in check, says Roark. Major players in this market include Hewlett-Packard Development Company LP, International Business Machines Corporation and Oracle. Furthermore, falling input costs have contributed to rising profit margins, which have in turn led to less financial risk for the average claims management software supplier. Buyers benefit from limited risks because it ensures the steady supply of claims management software from price hikes and bankruptcy.
However, not all factors are in the buyer's favor. Buyers face moderate switching costs because many vendors can integrate their existing infrastructure with the claims management software, which can be timely and costly to remove or replace. The downtime in between switching vendors can also make it difficult to manage claims operations, which can lead to even higher costs. Consequently, buyer negotiation power is slightly hurt because once buyers commit to a vendor, they run the risk of incurring additional costs should they look to switch suppliers. For more information, visit IBISWorld’s Claims Management Software procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of claims management software. This software, typically used by insurance carriers, tracks and manages insurance claims from their inception to settlement. Claims management software automates the insurance claim process, which helps companies to improve the speed of the claim, reduce human errors, cut down on costs and maintain records in a cost effective manner. The main users of claims management software are typically insurance carriers from several different segments in the market, including but not limited to: life and annuity, commercial property and casualty, homeowners and personal auto and workers compensation. This report does not include insurance claims services, billing management software or insurance brokers.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.