Q: What are the details of today’s announcement?
A: Applied Systems has acquired Tarmika. This transaction will bring together Applied Systems, a leading global provider of insurance software, with Tarmika, a leading commercial lines rating solution that streamlines small business insurance. This acquisition expands Applied’s commercial quoting and Ivans’ distribution connectivity solutions to create a more valuable and digital distribution experience at each stage of the insurance lifecycle, benefitting carriers, agencies, and the insured.
Q: Why did Applied acquire Tarmika? How will this benefit the insurance industry?
A: The commercial lines lifecycle is fraught with inefficient processes that create redundant work and slow down new and renewal business workflows. Both agencies and carriers are increasingly pressing to decrease cycle times and reduce costs of their SMB books of business, indicating that now is the time to lean into investments that create a more connected, collaborative, and efficient commercial lines distribution process for all stakeholders.
Since acquiring Indio in 2019, Applied and Ivans have been on a journey to further connect and automate the commercial lines workflow to create the digital roundtrip of insurance. In 2021, Ivans launched Ivans Distribution Platform (IDP), the industry’s platform to streamline the commercial submission process through standardized digital connections to agency-facing systems, and acquired Ask Kodiak to integrate the industry’s leading market search capabilities and market appetite management into the platform. Applied released Epic Quotes Commercial Lines to support commercial quoting for agents, and this latest acquisition is the next step in the company’s mission to solving the commercial lines challenges that have hampered our industry’s progress.
Applied will invest behind Tarmika’s industry-leading, real-time commercial lines quoting technology to bring the value of its simple, modern workflows and robust product panel as a standalone application. Tarmika will be integrated with Applied Epic and EZLynx, and overtime, users can expect embedded commercial lines quoting capabilities powered by Tarmika natively in the management systems.
Tarmika’s panel of commercial lines products will be integrated into IDP. The combination will make IDP the most robust commercial distribution platform available, creating more value by expanding opportunities for digital distribution for carriers, agencies and Ivans’ growing list of technology partners.
Additionally, Tarmika’s people have the proven ability to quickly bring product value to market, successfully connect agencies and carriers, and drive adoption of critical capabilities, all of which will support Applied’s innovation mission.
Q: How will this benefit Tarmika and Applied Systems customers?
A: Tarmika’s customers and partners will experience no impact to their primary services, support, or sales contacts. We believe the combination of Applied and Tarmika will provide significant benefits and greater choice to both companies’ customers, partners, and other stakeholders in the industry. Applied is committed to investing behind the combined teams to drive continued product innovation and deliver the highest level of value to our customers and partners. Our customers will greatly benefit from tighter integration of Tarmika’s commercial lines quoting technology and Applied’s product portfolio, and the scale that Ivans can bring to significantly expand its distribution channels.