Majesco, Cover-All to Merge to Strengthen P&C Insurance Offerings

Archived Published: 18 December 2014 ID: G00273345

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This merger, part of a consolidation trend among insurance technology providers, will bring together complementary product sets. Customers and prospects should seek a product road map and monitor integration and R&D plans.

News Analysis


On 14 December 2014, Majesco (formerly MajescoMastek) of New York City and Cover-All Technologies of Morristown, New Jersey, both technology providers to the insurance industry, announced a definitive agreement to merge. The new company will be named Majesco, with Ketan Mehta, founder and CEO of Majesco, as president and CEO and Manish Shah, president and CEO of Cover-All, in the role of executive vice president. The transaction, which is subject to regulatory and shareholder approval and other standard closing conditions, is expected to be completed in 2Q15.


This acquisition represents the latest example of the Gartner-predicted consolidation in the North American market for core solutions in property and casualty (P&C) insurance (following the 2013 SAP/Camilion and Insurity/AQS deals). This trend is driven by buyers' strong preference for providers with end-to-end capabilities across core solution modules and prebuilt content and experience covering common lines of business (LOBs) for multiline insurers. Core system providers are increasingly expanding into other areas, such as business intelligence (BI).

Both Majesco and Cover-All offer P&C core solution modules — with some overlap — but each brings capabilities that fill gaps in the other's offerings. Majesco has been successful in offering its modular core solutions as a full suite serving personal and commercial LOBs, and with alternative deployments, hosting over 60% of its customers. Cover-All has more commercial capabilities, including workers' compensation and Insurance Services Office (ISO) functionality, which Majesco began offering only in 2013. Beyond core systems, Cover-All also has a BI platform targeted at P&C insurance.

The combined company will gain several benefits:

  • Broader LOB coverage. The new company will have experience and content covering personal, commercial, workers' compensation and specialty LOBs.

  • New capabilities outside core systems (specifically, Cover-All's BI platform).

  • More complete support for bureau content. Majesco has been building out its capabilities in this area through ISO's Electronic Rating Content (ERC) program. Cover-All has a more traditional service bureau model, with a dedicated team that interprets new ISO circulars and other bureau updates and develops updates to push to customers. The combination of the two models will give the new company strong bureau content management capabilities and more support options for customers.

  • An expanded North American presence with more implementation resources to broaden the current Majesco offerings.

Current and prospective customers will need to monitor the new entity's integration closely. The two companies have released major refreshes of their core solutions and together support four sets of customers on significantly different versions of their systems. Given Majesco's current broad LOB support and suite capabilities, Gartner believes the new company will seek to move all customers to future versions of its modules. This move would show the company’s commitment to the North American P&C market following Majesco's recent spinoff from its corporate parent.


Insurance CIOs:

  • Demand a road map for integration and future development of Cover-All BI tools with Majesco core systems.

  • Evaluate R&D in policy and claims systems. If you are a Cover-All customer or prospect, delay making significant decisions until you determine which components Majesco will carry forward, discard or significantly change and how this will affect pricing and the upgrade path.

  • Monitor future investments in the life insurance segment, for which this merger does not offer any current value.

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