December 14, 2017
CHICAGO & MADISON, Wis.–(BUSINESS WIRE)–With today’s purchase of Chicago-based data and analytics software company, Networked Insights, American Family Insurance will accelerate its digital transformation, including its use of data, advanced analytics and artificial intelligence (AI).
At a time when technology and innovation are transforming the insurance industry, the acquisition allows American Family to build on its current advanced analytics capabilities to improve how it serves and meets the needs of customers.
“We have significantly invested in our technology platforms and data and analytics in the past three years,” said American Family Chairman and CEO Jack Salzwedel. “This acquisition and others strengthen our best-in-class agency distribution by bringing best-in-class digital and data capabilities, providing our customers with both expertise and convenience.”
American Family already is investing in AI and related technology across the organization – including through its Data Science and Analytics Lab, its Strategic Data Analytics Division, Innovation team and collaborative data-science projects with UW-Madison.
“These investments are part of our commitment to innovation through the use of data analytics and artificial intelligence for our customers and in ways that complement and improve the personal service we deliver to them,” said Peter Gunder, American Family Insurance chief business development officer. “The analytics capabilities we gain with Networked Insights will strengthen our ability to provide proactive protection to customers and to quickly identify and meet customer needs in new ways.”
In addition to its Chicago headquarters, Networked Insights also has operations in New York City and Madison, where American Family is headquartered.
“The insurance company of the future will be all about using data analytics to enhance the customer experience and be a trusted brand,” said Networked Insights Founder and Chief Executive Officer Dan Neely. “American Family has done a remarkable job at building a trusted brand. We are excited to deploy our deep expertise in broad areas of advanced analytics to enhance American Family’s existing data analytics capabilities.”
American Family is a Networked Insights client and has been a minority investor in the company since 2013, increasing its investment over time. With the acquisition, American Family became its sole owner. The purchase price is not being disclosed.
Networked Insights will operate as a stand-alone subsidiary of the American Family Insurance enterprise. In addition to serving its customers, Networked Insights employees will collaborate with American Family data scientists on projects using advanced analytic capabilities to improve customer interactions and business value.
All Networked Insights employees, 74 in total, will continue in their positions with the company, including Neely and Gerry Komlofske, president and chief operating officer. Neely will also join the American Family senior executive team.
American Family has also made a smaller acquisition of HomeGauge, a leading home inspection software company with 21 employees, based in Asheville, North Carolina. The aggregate information it provides will enable American Family to enhance its role proactively protecting consumers.
The Networked Insights and HomeGauge acquisitions follow American Family’s conversion from a mutual company to a mutual holding company to retain the concept of policyholder ownership while providing more flexibility to meet customer needs. Policyholders approved the conversion late last year.