Open GI has acquired PowerPlace from Towergate for an undisclosed amount, to provide brokers with a platform that strengthens existing client services whilst offering a comprehensive distribution channel for the lower premium end of their product range.
Following the completion of the transaction, PowerPlace’s all 48 staff will operate from Open GI, including CEO Nick Giddings.
Towergate has signed a 3-year agreement with Open GI to provide long term support of PowerPlace, ensuring providing various on-going agreements as well as provision of commercial insurance quotations via aggregator sites.
Towergate Group CEO Mark Hodges commented that the Open GI will provide the support and infrastructure to PowerPlace to move to its next phase of growth.
"Towergate Underwriting will continue to work closely with PowerPlace as part of a strategy to significantly grow e-traded business across multiple broker distribution channels."
Open GI Group CEO Chris Guillaume said in order to maintain a competitive offering in a difficult SME trading environment the channel needs to remove frictional cost whilst maintaining high service levels.
"As the PowerPlace market is fully web-based it is available for all brokers to use and we think this is likely to become the standard way of trading for this style of insurance," Guillaume added.