It’s been a long time coming
While financial details about the transaction were not disclosed, Zacharia said that this merger is an all-stock transaction.
The deal has been in the works for some time and involved lengthy discussions on how Insurify’s business model aligned with Compare.com and Admiral Group, which owns 78% of Inspop.
“This is not a transaction that came overnight,” Zacharia said. “We always thought there was a strong alignment of the two businesses because of Insurify’s AI tech platform and the very strong brand DNA that Compare and Admiral have created together.”
Zacharia said that this business agreement is also symbiotic in nature, “we believe there are many synergies between the merger of these two entities. We will certainly have operational efficiencies, but we will also learn from the efficiency of Compare as a pioneer within insurance shopping, and Admiral’s internationalization expertise.”
As a result, Zacharia expects Inspop and its roster of employees to be integrated into the Insurify umbrella, unifying each brand into one operation.
“The two businesses should be fully integrated within six months and then managed as one entity, leveraging each other’s strengths and expertise to dominate the online comparison shopping industry,” said Zacharia.
Insurify is expected to gain 30% to 40% more customers immediately, while also seeing long-term business increases based on its ability to woo and retain new clients.
Insurify To Get https://t.co/CXSPa5wLb6Strengthening Market Leadership Position and Empowering Consumers to Find and Buy the Right Insurance for Their Needs https://t.co/JOFY7VVui1 pic.twitter.com/mujSPdgGwE
— Latest News from Business Wire (@NewsFromBW) March 6, 2023
Responding to strong consumer demand
The price comparison website business model, and the industry that resulted from it, has seen relatively slow penetration in the insurance field. “The reason it took a while to ramp up and gain traction is that the industry is very fragmented in how it works,” Zacharia said.
“There’s a lot of disparity and not enough coverage from a carrier perspective in terms of major corporations providing services for the entire market.”
Zacharia also noted a lag in businesses using or leveraging online services to meet the unique needs and concerns of a modern customer, who may be more digitally savvy. This has affected the comparison market’s ability to provide a thorough assessment for its clients to ensure they are choosing the package or quote that best suits them.
However, Zacharia is somewhat optimistic about the industry-wide changes that have begun to take place over the past decade, which he believes is driven by increased demand for the type of service Insurify offers.
“The reason we exist and have been able to double our annual revenue year after year is primarily driven by strong consumer demand,” he said.
“Ninety-five percent of customers start their insurance shopping online, while another 90% prefer to complete their transaction the same way.
“If we can combine their needs with a mature online enablement capability from the carriers, it will allow us to continue to expand and multiply over the years.”
More to come
While news of this merger may be hot off the presses, Zacharia and his team are in active acquisition mode.
“We have talked to several different companies, but this is the first one that we can make a public announcement about,” he announced. “We are very interested and eager to talk to complementary businesses that will help us expand and diversify our operations.”
Let us know what you think about this acquisition in the comments section below.
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