MGA Systems has agreed to merge with NetRate Systems Inc, a commercial insurance rating platform for MGAs and program administrators. No financial terms were disclosed. NetRate Systems is backed by Polaris Partners.
MELVILLE, N.Y., Aug. 26, 2020 /PRNewswire/ — MGA Systems, Inc., the leader in purpose-built software for the MGA and E&S brokerage industry, announced Wednesday it has executed a strategic merger with NetRate Systems, Inc., a leading 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 System (IMS) policy administration solution as its product suite.
The merger immediately creates a single, uniquely scaled provider platform solution for the growing MGA market and its complex, dynamic needs. It also expands MGA Systems’ commercial lines offerings by including its two-way integrated rating capabilities with NetRate for MGAs and program administrators. The integrated provider platform offers clients improved sales efficiencies, increased productivity, and unparalleled integration capabilities with third-party applications.
“We are excited about the growth and innovation opportunities that we can achieve together under one roof,” said John Bennis, president of MGA Systems, Inc. “NetRate and MGA Systems have been collaborating for more than a decade, and our shared clients have benefited in every case. Leveraging our IMS framework with NetRate’s ISO-based rating solutions makes clients more agile, with end-to-end processing built solely for MGAs. This merger provides clients access to leading-edge innovations that deliver highly integrated tools to accelerate efficiency, growth, and deliver the lowest total cost of ownership. In my book, that is industry leadership and partnership at its finest.”
According to NetRate CEO Paul Areida, “NetRate and MGA Systems share a vision for bringing to market a suite of business management tools that provides robust APIs and an open integration philosophy, offering the MGA community a single source of solutions for everything from rating, to policy issuance, to accounting, to 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.”
The combined company will be headquartered in New York and led by both Areida and Bennis, 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.
“We are thrilled to partner with John Bennis and his exceptional team,” said Dan Lombard, a partner at Polaris Partners, a Boston-based private investment firm. “The combined company possesses an unmatched combination of domain expertise and innovation capabilities. This is fortified by decades of important learning embedded in the product and a shared focus on the unique needs of MGAs.”
About MGA Systems, Inc.
MGA Systems, Inc. (https://www.mgasystems.com) is a software development company working exclusively in the insurance industry. The company’s management team has more than 30 years of real-world brokerage and MGA experience, which is reflected in the design of its flagship product, the Insurance Management System (IMS). The team at MGA Systems consists of highly skilled, Microsoft-certified developers, working with the latest tools and technologies. It is this combination of top developers working directly with experienced insurance industry professionals that results in the company’s leading-edge IMS product.
About NetRate Systems, Inc.
Since 1998, NetRate (https://www.netrate.com) has provided a powerful commercial lines rating solution that can be configured with unique classes and coverage features for program administrators, MGAs, and insurance carriers. With an ISO-based rating solution, customers can quickly and accurately rate, underwrite, quote, bind, issue, endorse and audit policies. NetRate excels in providing rating countrywide for Commercial Auto, Property, General Liability, Inland Marine, Crime, Workers’ Compensation and Cyber Liability lines of business. Strong industry partnerships and integrations with third-party providers ensure seamless workflows and processes for front and back office operations.
About Polaris Partners
Polaris Partners (https://www.polarispartners.com) has a 20-year-plus history of partnering with entrepreneurs and innovators who improve the way we live and work. The multi-billion-dollar firm manages specialty and diversified funds in healthcare and technology with investments across all stages. Polaris has offices in Boston and San Francisco.