Accenture has partnered with private equity group Apax Partners to cash in on the growing demand for digital technology in the insurance sector. As part of the deal, Apax will buy 60% stake in Accenture’s insurance business Duck Creek Technologies.
With the agreement in place, both will now pour their money and expertise into accelerating development and implementation of cloud-based digital claims, billing and policy administration software, focusing on Internet of Things (IoT) and analytics.
Duck Creek, which Accenture acquired in 2011 from venture capital investors, sells billing, claims, and policy software to property and casualty insurers. Approximately 1,000 insurance and insurance software specialists of Duck Creek will join the new joint venture.
“The insurance sector is on the cusp of a digital revolution that will redefine how it operates,” said John Cusano, senior managing director and head of Accenture’s global insurance practice. “This joint venture will open the door to a brave new stage of development.”
The equity firm, which manages more than $34 billion buyout fund, has a lot of stake in the technology sector. In 2010, Apax acquired 54% stake in Brazil’s computer-services company Tivit. As recently as four years ago, it purchased India’s software R&D services provider GlobalLogic, which has significant operations in Argentina and Chile. Reports say the firm has invested $2.5 billion of equity in technology companies since 2008.
Since acquiring Duck Creek, Accenture has developed and expanded its suite of P&C insurance technology solutions. The suite supports a full range of capabilities — from underwriting, policy administration, and agent support to rating, billing, and claims — and is designed to work independently or as a combined suite to manage all aspects of the P&C insurance lifecycle.
Analytics and cloud technologies are high in demand in the insurance sector as insurers are scrambling to analyze increasingly large sets of data for pricing risk.