This week saw two major announcements in the insurance technology landscape – Insurity acquired AQS, and SAP acquired Camilion. With the number of players in this space – is this a harbinger of things to come? Not necessarily. Interestingly both of these acquisitions resulted in a significant improvement of ISO capabilities for the acquiring companies.
With more and more insurers leveraging ISO, vendor solutions that provide full support for ISO products will likely increase in popularity. The ability for insurers to quickly and easily extend base ISO products with proprietary product features without coding or help from a vendor could prove to be a significant differentiator for a carrier. Those vendors who enable that speed to market and agility are likely to rise higher on a carrier’s short list of potential options.
More policy administration vendors are working with ISO to identify ways to streamline the process and deliver efficiencies to the carriers but AQS and Camilion were/are clearly leaders in this space. Will AQS and Camilion products continue to be available in partnership with other vendors? Or will the acquirers look at this as a significant competitive advantage that they will retain more tightly.
For other technology vendors, this is clearly a call to continue to develop ISO capabilities. ISO carriers who are looking at new policy administration solutions should be sure to understand the level of ISO support being provided by their vendor. For more information about the impact of managing ISO and some of the choices available, take a look at this report on typical internal processes for ISO circulars.