Guidewire's (GWRE) InsurancePlatform Adopted by Grinnell
Guidewire Software, Inc. GWRE recently announced that U.S.-based insurance company, Grinnell Mutual has deployed the company’s InsurancePlatform as a Software-as-a-Service (SaaS) offeringvia Guidewire Cloud to enhance customer experience.
Further, Grinnell Mutual intends to substitute the preceding systems with InsurancePlatform solution across its CONNECT project. The solution is designed to benefit insurers with streamlined claims management processes, enabling them to bolster operational efficiencies.
Notably, InsurancePlatform is a P&C industry platform which is deployed through Guidewire Cloud joining software, services, and partner ecosystem to customer business. The solution aids in reducing risk via increased productivity, bringing speed to market, digital engagement and simplifying IT infrastructure.
Notably, increasing adoption of technologies like artificial intelligence, robotic process automation, cognitive intelligence or blockchain calls for a best-in-class technology to address customer needs. Guidewire’s InsurancePlatform solution is aiding Grinnell Mutual’s customer-centric business model to improve its insurance processes.
With the synergies of the recently selected offerings and access to Guidewire’s Marketplace, Grinnell Mutual anticipates to provide innovative solutions and adapt to changing market demands
We believe that rapid adoption of Guidewire’s solutions will aid the company in bolstering subscription revenues, consequently enabling it to expand total addressable market or TAM.
Share Price Movement
Shares of Guidewire have returned approximately 14.5% in the past year, substantially outperforming the industry’s rally of 3.9%.
The outperformance can primarily be attributed to sturdy adoption of several cloud-based products. According to Gartner, the global SaaS market is anticipated to witness a CAGR of 17.8% from $58.8 billion in 2017 to reach $113.1 billion in 2021. The report favors company’s growth prospects and reinforces optimism in the stock.
Product Adoption: Key Catalysts
The company’s growing clout in the P&C core platform market is evident from market research firm Gartner’s October 2018 “Magic Quadrant for P&C Core Platforms, North America” report where it put Guidewire’s InsuranceSuite offering in the “Leaders” quadrant.
Further, the company’s elaborate partnership programs and strategic collaborations remain a key catalyst. Notably, Guidewire’s Partner Connect Program has been implemented worldwide, benefiting customers in the property and casualty insurance industry.
Moreover, Guidewire’s cloud deployment partner, Amazon Web Services (AWS) is also gaining momentum, which is a positive.
The company was recently selected by Optimum General Inc. Notably, Guidewire InsurancePlatform Core products will help Optimum General in operating residential lines of business.
Further, the company announced that South Africa-based insurer Santam will deploy its ClaimCenter offering across personal and commercial business domains.
Moreover, management is extremely optimistic regarding several cloud-based products launched recently, at a time when the P&C insurance industry is moving steadily toward the adoption of cloud solutions.
Zacks Rank and Stocks to Consider
Guidewirecarries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Cirrus Logic, Inc. CRUS, Universal Display Corporation OLED and Match Group, Inc. MTCH, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Cirrus Logic, Universal Display and Match Group have a long-term earnings growth rate of 15%, 30% and 15.15%, respectively.
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