The acquisition brings forth cutting-edge enterprise rating, a robust reinsurance solution, and a core platform tailored for the rapidly expanding MGA, MGU, and smaller insurer segment in the Property & Casualty (P&C) market.
The move is poised to propel Majesco’s P&C Solutions to new heights, delivering essential technologies that align with their growth strategies, foster innovation, and enhance speed to market, catering to the ever-evolving landscape of risk and market demands.
The addition of DRC’s expertise is expected to introduce more than 20 P&C customers to Majesco’s flourishing customer community. DRC’s forte lies in its market-leading enterprise rating designed for large insurers with intricate rating demands, along with a core platform specifically crafted for the thriving MGA/MGU market and the unique requirements of smaller insurers navigating a rapidly changing marketplace.
The acquisition significantly expands Majesco’s portfolio, offering comprehensive solutions that enhance operational optimisation, drive innovation, and accelerate speed to market for all stakeholders within the P&C market. This strategic move underscores Majesco’s commitment to a customer-centric growth strategy, reinforcing its mission to make 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,” said Adam Elster, Majesco CEO.
“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” said Karen Yamamoto, CEO of 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.”
Robust changes taking place in the P&C marketplace
The Property & Casualty (P&C) sector is undergoing substantial transformations and advancements in insurance products tailored to specific market segments, risks, or behaviour patterns. There is a heightened emphasis on managing rates with increased frequency and efficiency to facilitate seamless and swift updates, achieving a rapid speed to market.
The enterprise rating engine from DRC plays a pivotal role by externalising rates, rules, and logic associated with rating, ensuring consistency in rating changes and providing the flexibility and speed required for market responsiveness. This rating solution is set to be seamlessly integrated with Majesco Policy for P&C, and further integration with other policy solutions will be facilitated based on customer needs.Simultaneously, the P&C segment is witnessing a surge in the MGA/MGU market, where entities are opting for core platforms that can cater to the hybrid requirements of both insurers and MGAs.
The DRC core platform is purpose-built to address these distinctive needs, offering out-of-the-box capabilities and seamless integration for business placement into the Lloyd’s and London market. This streamlined implementation is not only quicker but also cost-effective, presenting significant value for this increasingly price-sensitive segment.
Commenting on the news, Karlyn Carnahan head of Celent’s North American insurance practice, said: “The acquisition of DRC by Majesco is a significant move that will undoubtedly add to Majesco’s market momentum and leadership in the industry.
“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.Majesco’s products have received recognition from industry experts such as Celent, Gartner, Aite-Novarica, Forrester, Quadrant Solutions, Everest Group, and ISG.
In the past 12 months, Majesco was ranked #1 in both P&C and L&AH in Quadrants’ Spark Matrix, recently earned a top 100 spot in IDC’s 2023 FinTech Rankings, named to FinTech Globals’ Top 100 InsurTech companies for 2023 and ranked 23rd in the 2023 Software Top 100 Companies.
Original source: Majesco
