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Insurance BPS player The Innovation Group (TIG) has signed a new £2.6m software deal with GuideOne Insurance Company, a niche US market insurer which provides cover for churches, education, home care providers, senior living communities and car and home owners.
TIG will provide its web-based Insurer Policy software to support GuideOne's growth in personal lines products, as well as Insurer Analytics for business intelligence, dashboard reporting and real-time analytics. Because this is a software implementation contract a high percentage of the revenue (£1.4m) will be booked up front. This revenue will be recognised in TIG’s current financial year.
While the size of the deal is small in relative terms, it is an important strategic win for TIG, which has its sights firmly on the US as a key growth market. TIG’s strategy is to go after the tier two and three insurers that still rely heavily on legacy systems for their day to day operations. Rather than a ‘rip-and-replace’ approach, which is potentially high cost and high risk for a tier two/three player, TIG’s products sit on top of these ageing systems providing new functionality, and a modernised end customer experience.
TIG is not alone seeking growth in the US however. UK-based competitors Xchanging and Quindell Portfolio are also investing in US market expansion (see Quindell takes aim at US market and Xchanging’s Xuber platform targets SaaS/BPaaS), attracted by the 30%+ organic growth market leader Guidewire is achieving (see our recent BusinessProcessViews report General insurance BPS opportunities in a rapidly changing market).
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