Applied Systems Europe Business Update

Applied Systems Europe has completed a strategic business review and has made the decision to withdraw Applied Epic from the UK market. As part of this review, we determined that we will continue to invest in our Applied TAM, Applied Rating Hub and Applied Riskhandler products in the UK and remain committed to our Republic of Ireland business.  

Applied has made strides in the UK market since its entrance in 2013 with the acquisition of Insurecom. With Applied Epic’s launch in 2018 with lighthouse customer A-Plan (now Howden), we saw strong early market response but have experienced tempered growth as a function of tough market dynamics, particularly in Commercial Lines. Despite ongoing product development for Applied Epic in the UK, we continue to underdeliver customer value. Due to the tough market dynamics, we believe the investment and time required to get Applied Epic into a winning position in the UK market are not defensible considering other opportunities where we believe we can win at a larger scale.

While this has been a difficult decision to make regarding our Epic UK business, we will continue to invest in and support Applied TAM, Applied Rating Hub and Applied Riskhandler products in the UK and remain fully committed to our Republic business and customer base.  

The difficult decision to cease our investments in Epic in the UK market will provide more capital for Applied to invest where we are winning. In North America, we have seen tremendous growth of the business, particularly as Applied Epic grows to be the most widely used platform in this market. We are winning with the winners in these markets,and see this as an opportunity to focus and invest in exciting growth areas, like AI, where we can continue winning and growing at a more accelerated rate.  

As a global leader with deep international relationships, Applied is committed to doing the right thing, fulfilling our customer contracts, and ensuring all our customers receive optimal business support throughout this process.  

All current Applied Epic customers, those brokers activating Applied Epic, and recently sold brokers of Applied Epic will be impacted by this decision. 

• For customers currently live on Applied Epic, we will do the right thing by all our customers to manage this transition in the time that works best for their business. Our team will be available for each of our customers to discuss their contract and the support they will need to migrate to their next technology stack – over the right time horizon.  

• For customers in activation, our team will be individually reaching out to customers shortly to discuss the steps to unwind their implementation and migrate them to their next technology stack. 

• For brokers recently sold and not activated, we will refund any paid services or activation fees. Our team will be individually reaching out to them shortly to discuss the specifics of their contract. 

• Our people are part of what makes working with Team Applied special, and we commit to continuity for our customers through this journey. 

Since our intention is to support our Applied Epic UK customers through the lifetime of their contracts, which could keep customers running on the broker management system for several years, we expect no immediate change to insurer contracts. As our etrading panels rely on this partnership, we will work individually with each insurer to ensure business continuity and support of our mutual broker customers during this transition.   

Applied TAM, Applied Rating Hub services, and Applied Riskhandler are not within scope of the strategic review and Applied UK customers utilising these products will not be impacted. Additionally, Applied Ireland customers and broader global customers of Applied Epic will not be impacted with this decision. 

Current third-party integrations and system providers will not experience any immediate impacts. Like the approach with our customers, we will engage with any third-party integrators of Applied Epic to understand their business processes and the potential business impacts of eliminating the integration of our mutual customers.  

Certain third-party work may be impacted during this time, and individual teams will be guided by their leaders on how to proceed with third-party work during this consultation period.

While this is a disappointing outcome from our investments to bring Epic into the UK market, we will continue to invest in our Applied TAM and Applied Rating Hub products in the UK and remain committed to our Republic of Ireland business.  

The difficult decision to cease our investments in Epic in the UK market will provide more capital for Applied to invest where we are winning. In North America, we have seen tremendous growth of business, particularly as Applied Epic grows to be the most used platform in this market. We are winning with the winners in these markets, and see this as an opportunity to focus and invest in exciting growth areas, like AI, where we can continue winning and growing at a more accelerated rate.