Vertafore Acquired by Roper Technologies—What it Means for Broker Software
There was more proof this month that broker software is incredibly valuable—Vertafore was acquired by Roper Technologies for a cool $5.35 billion.
That’s a big number. Especially for a company with old technology and frustrated clients.
The reality is that technology is transforming the industry, and there are companies that want a piece of the action. Acquisitions don’t happen if there isn’t potential or momentum. This news makes it clear—there is all kinds of upside for tech companies in the insurance space.
When we launched Broker Buddha, we realized the insurance business was at least a generation behind other categories when it comes to the embrace of digital operations. Maybe two. For tech people like us, that signaled opportunity. The industry wants—I believe needs—better solutions.
The independent agency software market is a duopoly, with Vertafore and Applied operating old systems with painful products and holding their client’s data hostage.
The main question I get from prospective clients, “Which Agency Management System do you recommend?” I answer, “None of them, they all stink.”
- Agency Management Systems are inherently back-office platforms and have weak client engagement functionality
- Bi-Annual release cycles means minimal feature expansion
- Closed platforms means data is inaccessible and 3rd-Party apps can’t easily integrate
- Legacy infrastructure means slow performance and frequent outages
We’re seeing clear demand for an open platform, evidenced by agencies moving onto Salesforce just so they can have access to their own data! They’re willing to pay Salesforce fees, plus additional software fees, just for that.
Next-level tech in commercial insurance software.
Our platform uses a modern technology stack with developer-friendly APIs. Our initial solution not only gained traction quickly, it spawned efforts by AMS providers to attempt to build similar functionality. Applied acquired Indio. Vertafore is trying to build something similar.
During this era of COVID, the demand for our platform has only grown. Remote workforces, far fewer in-person meetings, stressed-out clients who want a seamless customer experience—the many challenges created by the pandemic have forced many agencies to make a serious commitment to digitizing operations. We’ve expanded our capabilities, made onboarding even easier, and continue to increase our user base each month.
While it’s exciting to hear the news about another acquisition—and congratulations to our friends at Vertafore—we’re maintaining our focus. We’ll continue to offer a best-in-class solution that transforms outdated renewal and application practices, and we look forward to helping our users provide a better customer experience and complete the process of securing insurance faster than ever before.
— Jason Keck, CEO, Broker Buddha
Tuesday, August 25, 2020