News

12:21 PM
Connect Directly
Facebook
Google+
Twitter
RSS
E-Mail
50%
50%

Analysts Assess Insurity's AQS Acquisition

This latest manifestation of the Hartford-based vendor's renaissance exemplifies several industry trends, including a preference for core system suites, the importance of scale and the demand for ISO rating capabilities.
Previous
1 of 4
Next


Insurity continued its renaissance with the acquisition of AQS (Heartland, Wisc.), announced earlier this week. Insurity gained independence from LexisNexis in late 2011 when the Hartford-based Insurity was acquired by Genstar Capital.

Insurity acquired AQS principally for its customer base and its ISO rating capabilities, acknowledges Bob Larew, COO, Insurity. AQS owns the software and tools associated with Verisk's ISO Rating Service product, a relationship that will continue under the Insurity banner, as reported by I&T's Nathan Golia earlier this week.

[Insurity Acquires AQS, Citing 'Unique' ISO Relationship.]

In February Insurity announced a joint venture with MFXchange Holdings (Morristown, N.J.), a provider of hosted IT applications and outsourcing solutions, and I&T reported on Insurity's remarkable customer satisfaction turnaround, going from a score of 74 out of a possible 100 in Novarica's 2011 ACE Ranking for customer service while still within LexisNexis to a 90 in 2012.

In this article we present industry analysts' read on the significance of Insurity's acquisition of AQS to the insurance technology market.


Exemplifying Major Trends

Donald Light, Celent

Insurity's acquisition of AQS reflects several key trends in the insurance software business First, scale is going to be increasingly important. Bigger customer bases are providing significant advantages in terms of go-to-market momentum and resources for continuous improvement of a vendor's application portfolio. Second, insurers increasingly want vendors to provide highly integrated and componentized end-to-end solutions. This has been true for smaller and midsize insurers for years. It is starting to be true for larger insurers as well. Third, the ability to offer ISO rates, rules and forms in an easy-to-use, and easy-to-modify format has become table stakes for standard commercial lines insurers looking for new policy admin and rating systems.

[Related: Insurity as the "Madonna" of Insurance Systems.]

Anthony O'Donnell has covered technology in the insurance industry since 2000, when he joined the editorial staff of Insurance & Technology. As an editor and reporter for I&T and the InformationWeek Financial Services of TechWeb he has written on all areas of information ... View Full Bio

Previous
1 of 4
Next
Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Anthony R. O'Donnell
50%
50%
Anthony R. O'Donnell,
User Rank: Apprentice
3/7/2013 | 10:16:19 PM
re: Analysts Assess Insurity's AQS Acquisition
I think the best way to answer that is to say that Insurity has a very broad customer base from very small carriers, such as specialty carrier SPARTA Insurance in Hartford to tier ones such as Zurich and Travelers.
KBurger
50%
50%
KBurger,
User Rank: Author
3/7/2013 | 8:43:04 PM
re: Analysts Assess Insurity's AQS Acquisition
Was there a lot of similarity between the Insurity and AQS customer bases, in terms of types/sizes of companies/clients?
Register for Insurance & Technology Newsletters
White Papers
Current Issue
Insurance & Technology Digital Issue Oct. 27, 2014
Innovation? Check. Core modernization? Check. Security? Check. Today's insurance IT challenges don't stump this year's Elite 8.
Slideshows
Video