Accenture (ACN) will offer its Software as a Service (SaaS) solution to Berkshire Hathaway Specialty Insurance (:BHSI) to improve its business process. Per the agreement, Accenture will leverage its cloud platform to streamline BHSI’s business process thereby optimizing its operating costs.
Moreover, BHSI will be using Accenture Duck Creek Suite to better serve its clients by efficient claim management techniques and billing processes.
Accenture has been serving the insurance vertical for years. Continuous insurance deal wins underscore the efficacy and popularity of its services. This has also positively impacted its revenues.
In the last reported quarter, Financial Services revenues, which combine banking, capital markets and insurance, increased 4% year over year and helped Accenture register 1% increase in revenues. Other operating segments were either down or remained flat on a year-over-year basis.
It is worth mentioning that Accenture’s foothold in the insurance solutions market was further strengthened by the acquisitions of Duck Creek (Jul 2011) and avVenta (Oct 2012). Synergizing these acquisitions has enhanced Accenture’s insurance platform, which, in turn, is helping insurance providers to adapt to the changing market conditions, gauge future requirements and run high-performance businesses.
Nonetheless, the competition in the insurance sector is also increasing with players like IBM (IBM), Computer Sciences Corp. (CSC) and Hewlett-Packard Co. (HPQ) coming up with cost-effective solutions.
These companies have also started aggressive marketing to grab a chunk of the insurance market, with a special focus on the emerging ones. Thus, we believe that Accenture has to come up with innovative and customized solutions for its insurance customers to maintain its current position in the market.
Currently, Accenture has a Zacks Rank #3 (Hold).