Shortly after the announcement of the acquisition of Compu-Quote by Applied Systems, Insurance-Canada.ca conducted on on-line poll to sample reactions. The results of this poll indicate that brokers overall are taking a wait and see approach on the effects of the acquisition. However, there appear to be stronger feelings within subgroups defined by which products are currently used. We’d like your thoughts on the results.
The vast majority (73%) of respondents were brokers who used one or both of the two organizations’ products. The largest group of respondents (44%) used both Applied and CQ products.
In general, respondents were neutral on how the acquisition would impact business operation in Canada generally, however there was more of a reaction when it came to the respondents’ individual interests. The majority of CQ only users (67%) disagreed with the statement “In the long run, the acquisition will positively impact my business”, whereas almost the same proportion of users with both companies’ products (64%) agreed with the same statement.
When asked if the acquisition would create an entity with more resources to meet brokers needs, the overall majority of respondents agreed (see figure below). However, when the respondents were broken out by system user, the majority of CQ only users (62%) disagreed. Respondents using both CQ and Applied products were more sanguine, with 62% agreeing.
The same pattern also occurred in respect to feelings on whether the acquisition would improve prospects for broker connectivity and the adoption of industry standards. In both cases, there was overall little strong feeling, but when filtered by current system use, CQ only respondents were more negative and CQ plus Applied respondents more positive.
There was consensus in the over all response (68%) and among CQ only users (68%) that the acquisition would not create greater price competition. The users of both companies’ products were split on the issue, with the largest segment being neutral.
The survey was open for 10 days in mid June 2012. There were 116 respondents. A report on the results can be found on the Insurance-Canada.ca website here.
Do these results track with your thinking? Are you waiting to see, and if so, what will impact your thinking. Leave a comment below.