Zywave, an insurance tech company and the Milwaukee area’s largest SaaS provider, is riding a growth wave after scooping up Idaho-based RateFactory, its sixth acquisition to date.
Along with Zywave’s existing suite of tools, the acquisition equips the insurtech firm with the industry’s only carrier-direct, multi-line small group quoting system serving insurance brokers. As part of the agreement, RateFactory customers and employees will join Zywave.
Terms of the deal were undisclosed.
Zywave CEO Jason Liu says the enhanced offering enables brokers to quickly create customized presentations for clients—without having to go back to the drawing board. Previously, getting quotes from multiple carriers was a manual and “mind-numbing” process, he says.
“RateFactory’s exclusive functionality, combined with the comprehensive capabilities of Code SixFour, makes our new offering unlike any other available to brokers,” Liu said.
Zywave acquired Code SixFour, a provider of proposal automation and advanced predictive analytics, in October 2018.
“This acquisition provides our partners with an industry-exclusive solution—accurate, multi-line small group quoting, directly linked to insurance carriers across the country," he added. "We are positioned for the next phase of quoting.”
The latest acquisition with RateFactory marks a major milestone for the company. Started roughly 25 years ago, Zywave first launched as a division of an independent insurance broker before becoming a full-fledged company providing sales management and client delivery solutions. The company serves nearly 6,000 independent insurance agents, including 97 out of 100 of the top 100 U.S. insurance firms, Liu says.
Liu, who joined Zywave as CEO one year ago, says the changing landscape of insurtech—fueled by automation, business intelligence and data analytics—has prompted the company to set its sights on growing its technology capabilities. As Zywave aims to capture a larger share of the $20 billion insurtech market, he says the company is actively looking for its next acquisition target, with plans to double in size over the next three to five years.
The company is currently on the hunt for medium-size emerging software companies with roughly 400-500 employees, Liu said.
“It’s a hot market,” says Liu. “More and more employers are requiring brokers to be more consultative when they present a plan or policy. We’re looking to scale. We’re flush with cash, but small enough to be nimble in a market that is rapidly changing.”
Liu credits the company’s long-running success to heralding its Midwestern “can-do” values, work culture and a willingness to adapt.
“There are very few Midwestern companies that have this much excitement and size,” Liu says. “What makes us super interesting is that we’re a software company in Milwaukee, we’re growing rapidly, and we’re this cool, exciting tech company. We have the stability and resources of a larger company, but can move more entrepreneurial.”
