THE MAGAZINE FOR INSURANCE IT & BUSINESS PROFESSIONALS
Editor in Chief
Robert Regis Hyle
Jason T. Williams
ITA Advisory Board
Security First Insurance Company
Millers Mutual Insurance
Craig S. Lowenthal
Gary H. Ouellette
Union Mutual of Vermont Companies
Glatfelter Insurance Group
Kenneth B. Zieden-Weber
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June 2017 // Issue 4 // Vol. 4
Mergers and acquisitions are a part of every industry, particularly those where profits are at worst steady and for most increasing. It’s a healthy sign companies are willing
to invest, particularly in a niche market such as insurance technology.
Before all the news about insurtech took over nearly every insurance technology
conversation this year, the subject of M&A activity among solution providers—
particularly in the core systems space—had many observers looking both ways to see what
was coming next.
As part of this issue of ITA Pro, I interviewed CEOs from five of the leading insurance technology companies operating in North America and each of them felt certain
the pattern established over the last six months would continue, albeit at a slightly
Jeffrey Glazer, CEO of Insurity, explained his company’s strategy. He looks at technology solutions as boxes on a checkerboard and each square should be filled with one
or more solutions to help solve the issues that face insurers.
All the vendors agreed with the view there is no such thing as an average insurer.
No one was willing to say any of the carriers in the market are unique, but there are
differences among them that need to be addressed individually. One size does not necessarily fit all when it comes to insurance and insurance technology solutions.
Many solution providers look for prestige names to add to their client list, but the
mid-tier and smaller market is where the true competition takes place among solution
providers. The sheer number of insurance companies that fall under those two headings demands competition—and not just from core solution providers.
Inevitably, insurtech became a part of the conversation as well and this is where
Glazer’s checkerboard theory plays out. For most of the last two decades, technology
solution providers have served as the R&D departments for most insurance companies. Today, insurtech companies—with a wide variety of products—are stepping into
that role, which makes them targets for the larger players in the market.
Distribution, underwriting, and claims management tools are entering the market
at a pace never seen before. Obviously not all the companies working on such solutions
will be successful and the viability of their products will be in question until proven
otherwise, but the opportunity for larger, well-established solution providers to enhance their existing products is a lure that cannot be ignored.
Insurance carriers want the best solutions possible and if their solution providers
aren’t finding new and better ways to enhance what’s already available, they are not
being the partners they promised to be when both sides sat down and signed their
The race is on among the solution providers and carriers are serving as jockeys,
spurring on their partners to get to the finish line first. Of course, another race will be
starting shortly after that. It’s a never-ending story, after all. ITA
Robert Regis Hyle