Insurance and credit data supplier ChoicePoint said its signing of a strategic alliance agreement with insurance technology firm AMS Services will extend ChoicePoint’s capabilities for data sales to thousands of additional insurance agents and industry professionals nationwide.
The agreement was signed simultaneously with the sale of ChoicePoint’s own comparative rating software firm, Priority Data Systems, to AMS Services. Based in Omaha, Priority Data Systems provides comparative rating software primarily to the independent insurance agency market.
Under the agreement, 15,000 independent insurance agencies and 150,000 end-users of AMS will gain access to ChoicePoint data products.
AMS Services is a major technology provider for insurance agents, carriers, managing general agents and wholesale brokers. Based near Seattle, AMS Services provides agency management, rating, benefits, performance management and carrier/agent connectivity tools.
The alliance and acquisition strengthens AMS Services’ position in the real-time, multiple-carrier rating market while expanding its presence to 48 states, making it the largest provider of rating solutions in the country, according to AMS Services.
As part of the partnership, AMS Services will provide access to ChoicePoint data products including credit, CLUE® and motor vehicle reports, streamlining the quoting process for agents. The partnership also promises that insurance carriers will have greater access to new business opportunities through real-time quoting that supports their unique underwriting philosophies.
“The combination of the ChoicePoint alliance and the acquisition of Priority Data Systems will increase productivity and provide broad real-time carrier connectivity for AMS Services’ customers and prospects,” said Euan Menzies, president and CEO of AMS Services. “The work that we are doing is proof of our strong belief that multiple-carrier rating is an essential ingredient in the success of the independent insurance agent.”
Terms of the agreements were not disclosed. The divestiture is not expected to have a material impact on ChoicePoint’s continuing operating results.
ChoicePoint will record an after-tax loss of approximately $3-4 million in the divestiture, but the company said it believes the strategic alliance with AMS Services will provide significant long-term benefits.
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