Singapore-based private equity fund Triple P Capital has acquired Contemi Group, an insurance information technology solutions provider that operates chiefly in Asia and Scandinavia.
Triple P Capital said yesterday that it bought the firm as it sees rapid growth and innovation in the IT market for insurance.
It has injected US$5 million (S$6.9 million) into Contemi and plans to increase its investment as the company gains traction with its strategies.
"The most successful insurers today are consistently expanding their investments in IT, particularly around middle and front-end solutions and customised developments," said Triple P Capital partner Allan Pedersen.
"These increased investments are vital for insurers to be able to take advantage of all the exciting new business, partnership and efficiency opportunities that new technology and changing customer habits are enabling.
"We found that Contemi has outstanding solutions and services for participating in this growth market for both Europe and Asia."
Mr Pedersen said the fund found Contemi's foothold in Asia attractive, with its strong client presence in the region's emerging markets such as Vietnam, where it has more than 60 skilled developers working on quality insurance solutions.
He said: "In Contemi, we see a company that combines high-quality insurance solutions with the capacity to provide fast solution designs and implementations.
"In addition to those, Contemi has a robust set of clients in both Europe and Asia, making it a leading IT insurance firm that is ready to shoulder the challenges of digitalisation in the insurance sector - particularly in Asia, where many emerging markets still need to ramp up financial inclusion and literacy."
Triple P Capital added that Contemi plans to turn its core policy system into an open source project in the first quarter of next year.
Contemi chief executive Karl Busk said modern insurers are rapidly adopting open source solutions in their IT architecture, and the company believes the industry is ready to appreciate the benefits of an open source core policy system.
"We are excited at the prospect of engaging more deeply with the insurance industry developer community in this process, as - by working together - we hope we can turn this core policy system open source project into a successful core basic platform for the insurance community," he added.