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.
March 07, 2013


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.]

Insurance & Technology encourages readers to engage in spirited, healthy debate, including taking us to task. However, Insurance & Technology moderates all comments posted to our site, and reserves the right to modify or remove any content that it determines to be derogatory, offensive, inflammatory, vulgar, irrelevant/off-topic, racist or obvious marketing/SPAM. Insurance & Technology further reserves the right to disable the profile of any commenter participating in said activities.

 
Disqus Tips To upload an avatar photo, first complete your Disqus profile. | Please read our commenting policy.
 

< Previous 1 2 3 4 5 Next >