Verisk, a US-based data analytics provider to the insurance industry, has struck a definitive agreement to buy software firm FAST in a deal worth $193.5m.

FAST, which stands for “Flexible Architecture, Simplified Technology,” provides a policy administration system that enables life insurers to speed up underwriting and claims.

The company’s SaaS suite of out-of-the-box components enables life insurance firms to replace their legacy policy administration systems.

Additionally, FAST offers a channel for Verisk to provide its new analytics, aimed at facilitating straight-through underwriting.

Commenting on the deal, Verisk business president of ISO Neil Spector said: “As customer expectations for a fast and easy insurance experience rapidly increase, life insurers are being pressured to modernise operations across the policy life cycle.

“But transitioning from legacy solutions is a major investment in time and money. The plug-and-play software that FAST has developed lets life insurers make this transition in stages and without a large up-front capital commitment.”

Verisk COO Mark Anquillare said: “The acquisition of FAST will extend our offerings to the life insurance market as we build a comprehensive suite of innovative solutions to support insurer modernisation.

“By working with FAST technology and its customers, we’ll be able to improve our predictive models and offer integrated data analytics to life insurers through an end-to-end workflow solution.”

The deal awaits the completion of customary closing conditions.

FAST CEO Tom Famularo stated: “As part of Verisk, we’ll be able to enhance our software, expand our reach, and provide robust analytics to meet the rapidly changing needs of life insurers and their customers.”