Two technology providers for managing general agency marketplace are merging their products and firms.
MGA Systems Inc., a provider of software for MGAs and excess and surplus brokers, said it has executed a merger with NetRate Systems Inc., a commercial insurance rating platform for MGAs and program administrators.
The combined company will go to market as MGA Systems, with NetRate’s ISO-based rating application and MGA Systems’ Insurance Management Systems (IMS) policy administration solution as its product suite.
The merger immediately creates a single, uniquely scaled provider platform for the MGA market. It also expands MGA Systems’ commercial lines offerings by including its two-way integrated rating capabilities with NetRate for MGAs and program administrators.
The combined company will be headquartered in New York and led by both NetRate CEO Paul Areida and John Bennis, president of MGA Systems, who each bring more than 30 years of insurance software experience to the business. Both will serve on the board of directors and remain the largest individual shareholders.
Bennis said NetRate and MGA Systems have been collaborating for more than a decade and have shared clients.
NetRate CEO Paul Areida said the deal offers the MGA community a single source for rating, policy issuance, accounting and claims handling.
“The traditional MGA-focused platforms continue to be manual, disparate and highly fragmented, which challenges a program administrator’s ability to achieve speed to market, service delivery, scalability, and sustainable growth and profit,” said Areida.
Polaris Partners, a Boston-based private investment firm, is an investor in the combined firm.
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