Last week, Insurity Inc. and Tropics Software Technologies Inc. announced that they were joining forces. Based in Sarasota, Florida, Tropics will now operate as “Tropics, an Insurity company” under the terms of the deal. We spoke with Trae Jones, director of sales and marketing at Tropics, and Lani Cathey, vice president at Insurity, to learn more about the deal and how they expect it to make a splash in the workers’ comp tech market.
Comp Blog: Who is Insurity?
Cathey: We have been in the property/casualty insurance software business since 1985, our strength has traditionally been policy administration solutions. We also have a long history and deep customer base across the industry and are privately held. With the Tropics acquisition, we have over 175 customers in the P/C space.
Comp Blog: Why was Insurity interested in Tropics?
Cathey: Currently, Insurity is in aggressive growth mode, which includes acquisitions. It was a matchmaker’s match – Tropics wanted a company that could match its internal culture and we are looking to strengthen our presence in niche markets. In other words, strong financial backing meets culture.
Comp Blog: Regarding company culture, how would you respond to the concerns of current Tropics customers who expect a small, teams-based approach?
Cathey: The central tenet of the acquisition was to leave the customer service, products and support in place. Essentially, this is what we did when we acquired OceanWide, a marine insurance software company, in 2015 and the transition has gone really well.
Jones: Here at Tropics, we looked at the 2015 OceanWide acquisition as a model and we saw that Oceanwide got to keep its autonomy and the ability to leverage its existing brand and products, that’s what we’ll be doing as well. The plan it to continue to utilize our team, Tropics Breeze – our core system – and focus on our monoline workers’ comp target customers. We serve workers’ comp programs of all kinds in that space – from start-ups to some monoline carriers and self-insured funds with up to $250 million in premium. Oceanwide also has a really very robust cloud-based hosting model system that works within Insurity’s framework, and we saw that as a great addition to the partnership.
Comp Blog: Given the new financial backing and the work of Insurity’s other companies, will Tropics expand – either hiring new people or creating new software solutions within that niche monoline comp market?
Jones: We will continue to grow and hire the support staff to have the same level of service within Tropics Breeze, but the investment is there to keep growing.
Cathey: Insurity is a long player in the workers’ comp market, but usually among multiline carriers. We have 41 customers in workers’ comp and Tropics has their 23 clients. We’ll assess needs going forward, but the goal is create a workers’ comp center of excellence between the two of us post-acquisition.
Editor’s Note: Tropics was a contributor to Louisiana Comp Blog’s “Tech Trends” series, read about Tropics’ approach to creating a millennial-friendly internal and external environment here.