(Image credit: Zetong Li/Unsplash.)
Majesco (Morristown, N.J.), a global provider of cloud insurance software solutions for insurance business transformation, has announced the acquisition of the Decision Research Corporation (DRC; Honolulu) business, a SaaS-based insurance software company delivering enterprise rating, a reinsurance solution, and core system technology for the property/casualty insurance market. Majesco will add over 20 P&C customers through the acquisition.
Majesco has been a premier provider of core and related technology to large and mid-sized insurers. Through the acquisition of DRC, the company will be able to enhance its proposition to MGAs, MGUs and smaller insurers. DRC created an enterprise rating for large insurers with complex rating demands and the core platform for the rapidly growing MGA/MGU market and unique demands for smaller insurers in a rapidly changing marketplace. The DRC acquisition expands the breadth and depth of solutions to improve operational optimization, innovation, and speed to market for all parties within the P&C market. Majesco acknowledges that the acquisition enhances its customer-centric growth strategy and reinforces its commitment to making insurance faster, easier and better for all.
“We’re thrilled to welcome DRC’s customers to our community and look forward to working with them to fast-track their growth, innovation and customer excellence strategies,” comments Adam Elster, CEO, Majesco. “DRC’s market-leading solutions complement and extend our cutting-edge solutions for the P&C insurance segment, offering a portfolio of some of the most robust and innovative solutions in the market. We are excited to have the talented DRC team bring their extensive knowledge and market experience in these crucial and growing market segments and support our growing customer base.”
“DRC is excited to be joining the Majesco team; we believe that the acquisition will expand market opportunities and provide accelerated adoption and implementation of our solutions for our customers,” comments Karen Yamamoto, CEO, DRC. “The combined value of our products will deliver unmatched capabilities and value to the evolving P&C industry while expanding our ability to deliver specialized solutions for niche segments of the market.”
Majesco sees the acquisition within the context of a significant change within the property/casualty industry, which is experiencing significant change and innovation in insurance products that are market segment specific, risk specific, or behavior based, as well as focus on managing rates more frequently and efficiently to enable easy and fast updates that achieve speed to market. The DRC enterprise rating engine externalizes the rates, rules, and logic associated with rating to work with multiple policy systems to ensure consistency in rating changes, flexibility, and speed to market. The rating solution will be pre-integrated with Majesco Policy for P&C and will continue to integrate with other policy solutions as needed by customers, according to a Majesco statement.
At the same time, the P&C segment continues to see the rapid growth in the MGA/MGU market, creating demand for solutions meeting the hybrid needs of both an insurer and MGA. The DRC core platform is specifically built to address these unique needs including out of the box capabilities and integration for business placement into the Lloyds and London market that can be implemented quicker and cost-effectively, which is of critical value for this increasingly price sensitive segment.
Extended, Complemented Product Portfolio
“The acquisition of DRC by Majesco is a significant move that will undoubtedly add to Majesco’s market momentum and leadership in the industry,” comments Karlyn Carnahan head of Celent’s (Boston) North American insurance practice. “With this acquisition, Majesco will be able to extend and complement its product portfolio by adding capabilities in the rapidly growing area of standalone rating. It will also act as a force multiplier to drive growth in MGA/MGUs and specialty insurers. The financial strength and R&D commitment of Majesco will help accelerate investment and innovation in these areas where DRC has been a front-runner. Overall, this acquisition is a smart strategic move that will benefit both companies and the industry as a whole.”
Sheppard, Mullin, Richter & Hampton LLP acted as legal advisors to Majesco. Fox Rothschild LLP served as legal advisors to DRC.