Guidewire Software, Inc. is a provider of software products and subscription
services for the global property and casualty (“P&C”) industry.
Our software serves as a technology platform for P&C insurance primary carriers.
Guidewire InsurancePlatformTM consists of applications to support core operations,
data management and analytics, and digital engagement and is connected to numerous
data sources and third party applications. Our applications are designed to
work together to strengthen our customers’ ability to adapt and succeed.
Guidewire InsuranceSuite™ and Guidewire InsuranceNowTM provide core transactional
systems of record that support the entire insurance lifecycle, including product
definition, distribution, underwriting, policy holder services and claims management.
Guidewire InsuranceSuite is a highly-configurable and scalable system comprised
primarily of three applications (ClaimCenter, PolicyCenter and BillingCenter)
that can be licensed separately or together and can be deployed on-premise or
in the cloud. Guidewire InsuranceNow is a cloud-based system that offers policy,
billing, and claims management functionality to insurers that prefer an all-in-one
solution. Our data and analytics applications enable insurers to manage data
more effectively and gain insights into their business. Our digital engagement
applications enable digital sales, omni-channel service and enhanced claims
experiences for policyholders, agents, vendor partners and field personnel.
The applications and services of Guidewire InsurancePlatform can be deployed
on-premise, in the cloud or in a hybrid mode. To support P&C insurers globally,
we have and will continue to localize our software for use in a variety of international
regulatory, language and currency environments.
Our customers range from some of the largest global insurance carriers or their
subsidiaries, such as Aviva, AXA and Zurich to predominantly national carriers
such as Basler Versicherung (Switzerland), Direct Line Group (U.K.), Farmers
Insurance (U.S.), IAG (Australia), MS&AD (Japan), Nationwide (U.S.), PZU
(Poland) and San Cristobal Seguros S.A. (Argentina) and carriers that serve
specific states and/or regions such as Automobile Club of Southern California
(California), Canadian Automobile Association Insurance Company (Ontario), Kentucky
Farm Bureau (Kentucky), and Vermont Mutual Insurance Group (Vermont).
We began our principal business operations in 2001. To date, we have generated
a substantial majority of our software license revenues through annual or quarterly
license fees that recur during the term of a customer’s contract and any
subsequent renewal periods. We also generate perpetual license revenues and
subscription revenues. We anticipate that subscription revenue will increase
as a percentage of total revenue as we develop and bring to market more cloud-based
solutions to meet increasing industry demand. Thus far, more than 100 customers
have subscribed to or licensed one or more applications that are cloud-delivered
by us or our partners. Services revenues are primarily derived from implementation
and training services performed for our customers. Substantially all of our
services revenues are currently billed on a time and materials basis.
The P&C insurance industry is large, fragmented, highly regulated and complex.
It is also highly competitive, with carriers competing primarily on the following
factors: product differentiation, pricing options, customer service, marketing
and advertising, affiliate programs and channel strategies.
P&C insurers continue to actively modernize the transactional systems that
support the key functional areas of P&C insurance: product definition, underwriting
and policy administration, claims management and billing. Product definition
specifies the insurance coverage, pricing, financial and legal terms of insurance
policies. Underwriting and policy administration includes collecting information
from potential policyholders, determining appropriate coverages and terms, pricing
policies, issuing policies and updating and maintaining policies over their
lifetimes. Claims management includes loss intake, investigation and evaluation
of incidents, settlement negotiation, vendor management, litigation management
and payment processing. Billing includes policyholder invoicing, payment collection,
agent commission calculation and disbursement. We believe that insurers that
adopt modern infrastructures can enhance customer experience, operate more efficiently
and introduce innovative products more rapidly.
We provide implementation and integration services to help our customers realize
the benefits of our software products and subscription services. Our implementation
teams assist customers in building implementation plans, integrating our software
with their existing systems and defining business rules and specific requirements
unique to each customer and installation. We also partner with leading system
integration consulting firms, certified on our software, to achieve scalable,
cost-effective implementations for our customers.