As those who are frequent visitors to this site are familiar, various industry reports and comments from insurance industry executive and analysts have been alarmist when it comes to the sector being a technology laggard. They have cautioned in unsubtle ways that every aspect of the insurance industry is poised for major disruption. In fact, they have noted that companies that do not invest in new technologies that automate business processes and improve customer interaction capabilities are setting themselves up for serious problems, sooner than later.
The flip side of these doom and gloom prognostications, is that established insurers are getting the message and start-ups already are starting to take bits out of lines of insurance. In short, money is going to be spent on software and services across the insurance industry and around the world, and this spells opportunity. And, with opportunity there inevitably comes a restructuring of vendors to impacted market sectors.
One such example of what is going on with those supplying solutions to insurers to help them remain viable is the announcement that Tindall Associates (TAI), the U.S. market leader in life reinsurance software and consulting services, is being acquired by a new joint venture whose partners are msg global solutions, a Swiss-based provider of integrated technology and services to the insurance/reinsurance/financial services industries, and LOGiQ³ Corp., a Toronto-based company that provides expert life insurance and reinsurance services.
Terms of the transaction were not disclosed. TAI operations will remain independent, with support from msg global solutions and LOGiQ³ for any future software development, architecture or consulting services. The firm’s current leadership, along with its license model and commitment to customer service excellence, will remain in place.
For those unfamiliar, TAI is a major player in North America in the niche area of ceded and retroceded reinsurance systems with more than 100 customers. Through LOGiQ³ and msg global solutions, TAI will also gain access to additional insurance and reinsurance expertise and a full suite of reinsurance administrative solutions available to the market.
TAI’s software products process assumed as well as ceded and retroceded business on the same stand-alone system. Plus, the company is a major player in life reinsurance reporting.
“This transaction is a clear signal to existing TAI customers regarding the quality of the solution they have already purchased, and a reflection of our solid commitment to a long-term product strategy,” said Steve Jerger, Chief Technology Officer at TAI. “We believe this joint venture solidifies TAI’s mission to become the global ceded life reinsurance system of choice and the number-one ceded life reinsurance platform worldwide.”
As noted in the announcement of the deal strengthens msg global solutions’ North American business in the life reinsurance markets . Bernhard Lang, msg global solutions’ Chief Executive Officer commented on the transaction saying, “We’ve been well received and successful in the North American market. With the TAI solution we realize a complement to our reinsurance offering and can offer more services to our existing customers and serve new customers with specific needs for ceded and retroceded reinsurance and life reinsurance. The innovations we will bring to the TAI solution will also benefit the existing customer base of TAI.”
In terms of the other joint venture partner, LOGiQ³, it has been a partner to msg global solutions since May 2013, and is well grounded in working with TAI as it has used the TAI system for its Reinsurance Administration outsourcing business over several years as a consulting and outsourcing services provider.
“This transaction enables LOGiQ³, msg global solutions and TAI to continue to partner with leading insurers and reinsurers to shape the industry through the world-class people, process, and tools that drive the industry forward on a global scale,” said LOGiQ³ Chief Operating Officer Simon Bell. “We are thrilled with the opportunity to extend our comprehensive suite of insurance and reinsurance services to the TAI client base.”
The transaction really is indicative of what is likely to happen in the insurance technology solutions business as 2015 progresses as the hunters look to fill out their portfolios in the face of what should be significant new demand as insurers look to streamline and in many cases totally transform their businesses.
Edited by Stefania Viscusi