(Sunrise at Lago Mar Resort, site of IIR’s Latin American Insurance IT Executive Summit. Photo by Anthony O’Donnell)
Insurity (Hartford) announced this morning at the IASA Educational Conference and Business Show in San Antonio, Texas its acquisition of Tropics Software Technologies as part of a strategy to dominate the insurance software market for various specialty lines segments. Tropics, based in Sarasota, Fla., is an insurance software firm that focuses on the workers’ compensation market for mono-line carriers, state and self-insured funds as well as other specialty workers’ compensation organizations. The Tropics brand will be retained with the organization operating as “Tropics, an Insurity company.”
The new deal builds on Insurity’s acquisition of Oceanwide in May 2015, further strengthening the vendor’s position in the workers’ compensation market, and advancing its strategy to be the dominant provider in various specialty lines, according to Lani Cathey, SVP, Insurity, who spoke with Insurance Innovation Reporter yesterday evening.
Leading Workers’ Comp Player
Insurity’s published statement on the acquisition says that Tropics’ specialized expertise and comprehensive core systems offer a strong combination of services and solutions, making it the leading player in the software market for mono-line workers’ compensation carriers and self-insured funds. In combination with its own strong presence and expertise in the workers’ compensation market, and the two companies’ robust customer bases, Insurity will be establishing a center of excellence that will include core processing software, compliance services, portals and other technology focused value propositions.
“With both Oceanwide and Tropics, we’re clearly leading player in specialty,” commented Mark Adessky, president and co-founder of Oceanwide in the conversation with IIR. “We’ll be investing in both companies’ products to develop a center of excellence for workers’ comp which will later be replicated in other lines. Tropics has excellent rep, as does Insurity, so we think it’s a powerful strategy.”
In addition to the Tropics complementarity to Insurity and Oceanwide’s portfolio of products and services, the three organizations share a common commitment to the Microsoft technology architecture, enabling the sharing of professional resources and solution components across platforms.
Insurity asserts that the three companies are also now able to offer their respective and shared clients even greater value with a broader and deeper solution set, leveraging the combined expertise of the organizations. Specifically, Tropics and its customers will now be able to benefit from Oceanwide’s cloud delivery expertise and Insurity’s deep experience with compliance services, along with an ability to support larger, more diverse organizations with greater depth, complementary solutions and the financial resources of Insurity, the vendor says.
Creation of Greater Value for Clients
“As insurers increasingly expect their core systems suite vendors to offer them a broad range of capabilities, acquisitions like this that combine specialty components with a broad suite including portals and business intelligence can enable the creation of more value for clients,” comments Matthew Josefowicz, president and CEO of Novarica.
“As part of the Insurity organization we see a tremendous opportunity to expand our reach and better support our existing clients with service, delivery and software options—including Insurity’s IEV data solution and Oceanwide’s Bridge Portal,” commented Mike Mobar, CEO, Tropics. “We now have a distinct advantage in the workers’ compensation market. By coupling the breadth of our software solutions and industry expertise with those of Insurity, we have what I would argue is the industry’s strongest set of workers’ compensation offerings to address the needs of any size insurer.”
Jeffrey Glazer, Insurity president and CEO, comments, “Tropics is a great addition to the Insurity group of companies, bringing significant expertise, a proven solution and a strong client base. The ability to leverage solution components and technology across Insurity, Oceanwide, and Tropics platforms gives all of our companies and our customers a distinct opportunity to differentiate and be the most competitive players in the market.”
“Insurity will continue to support and sell the workers’ compensation solutions offered by Insurity, namely, Policy Decisions, and by Tropics, namely Breeze and Ocean,” Glazer adds. “We will continue to make ongoing investments in these products and related technologies, people, and services as we establish a workers’ compensation center of excellence to promote best practices and drive technological advancement in this area of the market.”