Bendor alignment is becoming more important in the insurance software field as software developers look to achieve an end-to-end solution that doesnt come in one big box.

In todays insurance world, software developers are looking to do business with counterparts other than just insurance carriers. An increasing tendency in the solutions industry is for vendors to establish strategic alignments that will deliver a quality end-to-end solution, according to TowerGroup senior analyst Cynthia Saccocia in her research notes entitled Insurance Software Vendors: The Logic Is in the Delivery.

Point solutions are not delivering the metrics insurers are looking for, says Saccocia. Strategic alignments were around before the insurance industry began, but Saccocia notes vendors may be moving away from two-party alignments to consider multivendor pacts that offer a full range of solutions. One such alignment is the VeraSure solution organized by DST Output and including Document Sciences, New River, Acxiom, and Edgewater Technologies. When we look at something like a VeraSure alliance, where you have a consortium of vendors coming together to solve an end-to-end process, substantial ROI can be achieved because [insurers] derive the cost savings throughout the process as opposed to just one single area of the process, says Saccocia.