Digital engagement solutions provider Fermion has acquired  an undisclosed stake in Singapore-based insurtech company Ancileo.

The value and other terms of the deal have not been disclosed by the companies.  

The deal is set to allow insurers to strengthen and update their insurance distribution system. It is also expected to develop an improved insurance ecosystem in the travel and banking sectors.

Leveraging the capabilities of Ancileo, Fermion aims to expand its presence from 10 to 26 markets across the globe as well as make an entry into the travel insurance market.

Ancileo will have access to around 230 banks for improving its bancassurance operations.

Fermion Group CEO Peter Miller said: “Ancileo’s entrepreneurial spirit and mindset, as well as their technology complement our own business proposition.

“Combined, our strengths will help insurers everywhere to become more adaptive, creative, and resilient at establishing new distribution ecosystems.”

Fermion further noted that the latest investment will help its customers to avoid their legacy systems as well as enable insurers to implement new insurance distribution methods.

Insurers will be able to form digital partnerships to expand their presence from local to regional and global.

They will also be able to provide personalised solutions.

Miller added: “Our investment in Ancileo arms Fermion with the right ingredients to grow exponentially, as well as expand into the travel and hospitality sectors.”

Last month, Fermion announced that Allianz Insurance Singapore (Allianz Singapore) had adopted its solution for motor claims insurance.

With the adoption, Allianz Singapore will be able to use Fermion’s comprehensive digital policy distribution and claims management solutions driven by data and ecosystems.