• Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Contact Us
  • Sponsor An Email
  • Post A Job
  • Merger & Acquisition Services

Agency Checklists

Massachusetts Insurance News & Job Opportunities

You are here: Home / Insurance News | Massachusetts / Massagent | News & Announcements / Google’s CapitalG Takes A Minority Stake In Applied Systems

Google’s CapitalG Takes A Minority Stake In Applied Systems

October 23, 2018 by AC Editor

Another foray into the insurance industry

Google is dipping its toe back into the insurance industry with its latest announcement. Applied Systems, the insurance agency management system for independent agencies, is now a part of the CapitalG family. According to a company announcement, CapitalG, or the growth equity investment fund of Google’s Alphabet, has taken a minority stake in the company.

Under the terms of the agreement, affiliates of Hellman & Friedman will retain a majority ownership in Applied, with CapitalG, JMI Equity and Stone Point Capital, all becoming  minority investors. The transaction is scheduled to close in the the third quarter of 2018. Further terms of the transaction were not disclosed.

“Applied Systems is a pioneer in the insurance industry, transforming the way insurers, agents and customers do business in the cloud,” explained Gene Frantz of CapitalG on the fund’s decision to invest in Applied. “We are excited to partner with Applied in support of its rapid growth and best-in-class technology.  We look forward to bringing some of the world’s leading experts at Google and Alphabet to drive innovation within the global insurance ecosystem.”

Agency Checklists, MA Insurance News, Mass. Insurance News, CapitalG Investments, CapitalG Portfolio
The companies CapitalG has invested in

Applied System’s impressive growth over the past five years

Applied has seen unparalleled growth over the past five years. Founded in 1983 and acquired by the private equity investment firm Hellman & Freidman in 2013, Applied has grown to become the world’s largest provider of agency and brokerage management systems.

In addition to more than doubling its size and revenue over the past five years, the company has also expanded globally and now claims a presence in the United States, Canada, the United Kingdom, and the Republic of Ireland along with over 1,600 employees. The company says with the backing of Google’s CapitalG, the company can now even further expand both its reach and technical expertise within the global insurance landscape.

“We are pleased to have CapitalG join Applied’s investor base given their deep software experience,” said Reid French, chief executive officer, Applied Systems. “We also welcome the technical expertise and resources that CapitalG brings through its connection with Google and look forward to their partnership as we continue to deliver innovation to the insurance industry in support of our growing customer base.”

Sameer Narang, Partner at Hellman & Friedman, added, “We are excited to welcome CapitalG as a strategic partner. CapitalG’s investment is a testament to Applied’s track record of innovation and its outlook for continued product leadership. CapitalG uniquely positions Applied to take advantage of tremendous growth opportunities by further accelerating several product initiatives for the benefit of Applied’s customers and the insurance industry.”

So what does this all mean?

Agency Checklists, MA Insurance News, Mass. Insurance News, Google, CapitalG, Investments in insurance innovationOverall, this announcement should be taken as a good sign for the independent insurance agency system. Note, no mention of disruption or competition, but rather driving innovation by “…further accelerating several product initiatives for the benefit of Applied’s customers and the insurance industry.”

Perhaps after surveying the insurance landscape with its Google Compare endeavor, Google has realized that it does not need to reinvent the insurance wheel, just help to make it better.

This evidenced by the fact that Google is making an investment into one of the leading insurance agency management systems. According to Applied, 99% of Best Practice agencies use an Applied System, with over 50% of all P&C electronic transactions being conducted via Applied applications. By giving Applied access to “the world’s leading experts at Google and Alphabet” the end result could bring tremendous opportunity to agents and agencies (who use Applied) in the types of products and processes that this collaboration may produce.

More importantly, Google is not acquiring Applied Systems thereby gaining access to all of its customer data to use for its own personal gain. It is taking a minority stake in Applied, in addition to providing Applied access to all of Google’s capabilities. “CapitalG’s investment will bring Applied access to Google expertise across artificial intelligence, machine learning, and digital marketing.”

It appears that the goal of CapitalG’s investment is to provide greater capabilities and efficiency to the insurance industry as it already exists, and that will ideally give agents new tools and products to provide an even higher level of specialized customer service to its insureds. As such, this announcement looks like a vote of confidence for the integral role that the independent agency system plays within the insurance industry.

Feel free to leave your own thoughts below…

 

 

Print Friendly, PDF & Email

Filed Under: Massagent | News & Announcements Tagged With: Applied Systems, CapitalG, Google, ma insurance news, Mass. Insurance News

Primary Sidebar

Sponsored

Sponsored

MA Division of Insurance Announcements

Latest Agency Sales

2022 Was An Up & Down Year For Agency Mergers & Acquisitions

2022 Was An Up & Down Year For Agency Mergers & Acquisitions

Insurance Agency Mergers & Acquisitions In Massachusetts | Q4-2022

More Agency Sales

Career News

The Hanover Appoints Kate B. Williams to President of E&S

The Hanover Appoints Kate B. Williams to President of E&S

Hi Marley Welcomes Naved Siddique as SVP, Strategy and Solutions

Hi Marley Welcomes Naved Siddique as SVP Strategy and Solutions

New Hampshire Insurance Department Staff Members Appointed to NAIC Standing Committees

Michael Percy Appointed To Concord Group Board of Directors

Michael Percy Appointed To Concord Group Board of Directors

Layoffs At Two Boston-Based Insurtechs

Layoffs At Two Boston-Based Insurtechs

Massachusetts insurance news, MA Insurance News, Mass. Commissioner of Insurance Gary Anderson, NAIC 2019 Appointments

NAIC Names Its 2023 Committee Leadership

The Hartford Names Hank Dominioni Head Of Northeast Division Sales And Underwriting For Middle And Large Commercial

The Hartford Names Hank Dominioni Head Of Northeast Division Sales And Underwriting For Middle And Large Commercial

Plymouth Rock Appoints Rachel Switchenko as Vice President of Customer Solutions

Boston Insurance Brokerage LLC Announces Promotion of Cara MacDonald to VP of Workers’ Compensation

Boston-based Risk Strategies

Risk Strategies Names Doran Lamond as Commercial Lines Leader, New England Region

View More Career News

In Memoriam

In Memoriam: Nancy L. Perocchi, 1937-2022

In Memoriam: Peter J. Nobile, Jr., 1931-2022

In Memoriam: Nancy Jane A. Vajcovec, 1947-2022 | Agency Checklists

In Memoriam: Nancy Jane A. Vajcovec, 1947-2022

CAR News

Outgoing Gov Baker Signs Catalytic Converter Bill on Way Out

Road Safety Analysts Put Mass. In “Danger” Zone

Final Look 2022: The Massachusetts Private Passenger Auto Insurance Marketplace

View More CAR News

Massachusetts Law Updates

Appeals Court Reins in Superior Court’s Expansion of Risk Management

Court Limits Indemnity Agreements Interpretation and Reverses $237K Legal Fee Award

Insured’s $2 Million Claim For Loss Prevention Costs Scuttled By The Supreme Judicial Court

A look at the Supreme Judicial Court of Massachusetts’ ruling on Ken’s Foods’ common law reimbursement claim.

An Insured’s Underpayment of Loss Lawsuit Over Brookline Building Backfires

The Appeals Court recently affirmed a decision in Anwar Faisal et al. v. United National Insurance Company that reminds one of the saying, “Be careful what you ask for. You may get it.” In this case, the insured sued to get more money on a property damage claim, asking the court to rule on his […]

Failed Foray Into Massachusetts Ends In A Lawsuit For New York Agency Over Its Producer’s Understanding of Salary v. Draw

A case in point about what can go wrong when an agency, its officers, and a producer being onboarded, come to loggerheads and litigation ensues.

More Mass. Law Updates

DOI News

Massachusetts Remains The 14th Largest Insurance Marketplace As Ranked By Total Premium Volume

Facts & Figures For New England Insurance Departments & Insurance Producers | 2023

Massachusetts Insurance Commissioner Honored for Exceptional Leadership

DOI: Insurance Companies Must Renew MA Appointments by October 14th

View More DOI News

Insurance Fraud

Walmart Will Pay $500k For Its Failure To Follow Workers’ Comp. Prescription Pricing Procedures

Former Insurance Adjuster Indicted in Connection with Stealing Identities of Four Victims of Merrimack Valley Gas Explosions

Phony Pumpkin Assault Claim Gets 3 Years For Insurance Fraud

Edgartown Masonry Company Owner Indicted for Workers’ Compensation Fraud

More Insurance Fraud News

Footer

Agency Checklists

Contact us

14 Summer Street
Suite 102
Malden, MA 02148
617-598-3800

Advertise on Agency Checklists

We offer a variety of ways to get help promote your company or product.

Announcements
Email Sponsorships
Partnerships
Custom Collaborations

*Affiliate Disclosure

Please note that any of Agency Checklists’ articles might contain one or more affiliate links. This means that any subsequent purchase resulting from these links may result in a commission for us, but at no additional cost to you. For example, as an Amazon Associate, Agency Checklists earns a commission from all qualifying purchases. By working with affiliates we can continue to keep Agency Checklists subscription free. Thank you for your support.

SEARCH OUR SITE

Explore Our Archives

Copyright © 2023 · Agency Checklists · All rights reserved.

 

Loading Comments...