Insureon acquires Insurance Noodle in yet another story of local insurance industry successes

by Will Brady
January 8, 2014

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The success of Chicago companies in the insurance world continued yesterday as two Chicago insurance companies announced some big news: insureon, an online broker for small businesses, will acquire Insurance Noodle, an online quoting hub for agents.

Although the financial details of the deal are not disclosed yet, insureon CEO Ted Devine said that Insurance Noodle’s 35 employees will be brought on at insureon and that Insurance Noodle President and CEO Ralph Blust will still oversee the company. With the addition of Insurance Noodle’s team, insureon’s own number of team members will top 100; and in 2014, Devine said insureon is expecting a 20 percent growth which will help the company to fill out its 10,300-square foot downtown office.

By the end of the month Insurance Noodle, which is currently held by Willis Group Holdings, will be handed over to insureon’s majority owner, private equity firm Accretive LLC. Combined, insureon and Insurance Noodle will have annual premiums in excess of $100 million and also will enjoy a broad national presence boosted by both insureon’s online platform and Insurance Noodle’s network within the agent and broker community.

“Insurance Noodle's network of independent and captive broker/agents will benefit from our intuitive technology platform and extensive network of products,” Devine said. “Insureon also brings to the table unique expertise in small commercial insurance that aligns with Noodle’s commitment to its captive and independent agents. This expertise will provide Noodle’s broker/agents increased access to carriers, products and vertical-specific expertise, which will improve their ability to deliver the customer service for which they are renowned.”

Armed with these benefits contributed by Insurance Noodle, insureon is ready to tackle some big goals in 2014: to assist the estimated 20 million small and micro businesses in the country that are either uninsured or underinsured.

“Because many of these businesses self-identify as freelancers or independent contractors, many don't even realize that they're legally considered business entities and as such are exposed to a number of business-specific risks,” Devine said. “In 2014, we're working to educate these business owners on the risks they face and how they can minimize the impact those risks have. We're taking an industry-by-industry approach, because risk management is a completely different game for restaurant owners than it is for janitorial service providers or IT consultants or dentists.”

And the startup industry is no exception, Devine said. He is urging young local businesses to assess their own risks: “Do a serious risk management audit. Look at your business, your customers and where the challenges lie. We all work so hard to build businesses - it's a shame to lose them to a natural disaster (polar vortex, anyone?), a cyberattack or an unexpected lawsuit from a disgruntled client.”

 

Carlin Sack contributed writing to this story.

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