Core insurance system vendor OneShield (Marlborough, Mass.) has reached an agreement to acquire specific strategic and intellectual property assets of Clear Data Strategies (CDS; Danbury, Conn.). The deal is likely help OneShield accelerate completion of its claims solution and offer a SaaS option to lower-tier carriers – a segment the vendor has not been heavily focused on, according to industry analyst Chad Hersh.
The acquisition brings OneShield two important benefits related to CDS’s earlier acquisition of the functionally rich Pyramid claim system, according to Hersh, managing partner, Novarica. “First, it should help OneShield complete the development of its claims solution more quickly and completely,” he opines. “Second, it provides OneShield with a SaaS option that can be priced for tier 4 and 5 carriers and implemented quickly.”
CDS provides both subscription cloud-based and site-installed software solutions for claims processing and policy administration for the property and casualty (P&C) insurance market. Customers of its Instream and Pyramid solutions include mid-sized and niche P&C carriers, self-insured organizations, specialty workers compensation insurance providers requiring full NCCI compliance, and TPAs and MGAs, according to a OneShield statement.
OneShield will absorb the CDS product line, and continue to support its growing and unique base of niche customers, the vendor reports. OneShield confirms that it will also leverage CDS’ 25 years of expertise in claims processing, and use it to further enhance the capabilities and functionality of its own claims administration product offering currently in development.
“We are excited to be adding the CDS family of solutions to our suite of enterprise products,” comments Glenn Anschutz, president and CEO, OneShield. He affirms that the acquisition will expand OneShield’s opportunities into lower-tier carriers, as well as specialty niche markets, where there is a greater appetite for hosted and cloud-based solutions.
“From an intellectual property standpoint, this also significantly augments our existing expertise in the area of claims processing,” Anschutz adds. “The CDS team brings an aggregate of 60-plus years of experience in building rich and robust functionality into claims administration solutions.”