Accenture Acquires Duck Creek

Looking to bolster the breadth of its insurance technology offerings, Accenture announced it has entered an agreement to acquire policy administration software provider Duck Creek Technologies.

Accenture says the deal, terms of which were not disclosed, will complement Accenture Software’s existing software stack and enable it to offer the P&C insurance market a full spectrum of capabilities from product configuration and policy management, to underwriting, billing, rating and claims management.

“This acquisition will enable Accenture to provide insurers with a leading, comprehensive component-based P&C software platform, with modules that can be implemented individually or collectively as part of a broader migration strategy, while reducing the total cost of ownership,” said Colin Davies, global managing director of Accenture Software. “In addition, Duck Creek’s solutions are built upon the same Microsoft .NET technology as Accenture’s existing P&C software platforms, which will facilitate rapid integration of the applications.”

Steve Hall, president and CEO of Duck Creek also stressed the synergies of the deal. “The two companies will bring together a powerful set of industry skills, technology services and implementation capabilities for P&C insurance clients, who will also benefit from additional experience, scale and R&D investment,” Hall said.

Since its founding in 200, Bolivar, Mo.-based Duck Creek has amassed more than 60 clients in North America and the U.K. Matthew Josefowicz, partner and managing director at Novarica, says the deal also has market implications.

“Accenture's purchase of Duck Creek Technologies gives them a well-accepted and proven asset in P&C rating and policy administration, as well as a large footprint among midsize P&C companies,” Josefowicz told Insurance Networking News. “Combined with their recent sale to Navy Mutual on the life side, this seems to signal a intent to compete more aggressively in the mid-tier U.S. insurance market.”

Moreover, the deal, which is expected to close within the next 30 days, may portend further acquisitions in the vendor space, Josefowicz says. “Combined with Thomas H. Lee's recent purchase of Sword Insurance, this seems to herald a period of increased activity in this marketplace.”

 

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