FMG Selects Guidewire Cloud to Maximise Agility and Support Continued Growth

Rhea-AI Summary

FMG has decided to transition its core business operations to Guidewire Cloud, a move aimed at maximizing agility and supporting ongoing growth. This shift involves migrating from FMG's current on-premise installation of Guidewire InsuranceSuite to the cloud-based solution. The move aligns with FMG’s strategy to simplify IT operations, adapt to market and customer changes, and ensure effective response during large-scale insurance events. This follows significant claims events in 2023, including Cyclone Gabrielle and the Auckland Anniversary Weekend floods.

Guidewire Cloud is anticipated to enhance FMG's ability to meet evolving market demands and client expectations. The partnership between FMG and Guidewire, which began in 2012, is set to deepen with this transition.

Positive

• FMG's transition to Guidewire Cloud is expected to simplify IT operations.
• The cloud migration aligns with FMG's strategy to adapt quickly to market and customer changes.
• Guidewire Cloud aims to support FMG's ongoing growth and ability to respond to large-scale insurance events.
• FMG and Guidewire have a longstanding partnership since 2012, with the transition set to deepen this relationship.

Negative

• The transition to Guidewire Cloud may involve initial implementation costs and potential disruption during the migration period.
• There is inherent risk in migrating critical business operations to a new platform, which could impact business continuity if not managed properly.

Insights

Tech Expert

FMG's transition from an on-premise installation to Guidewire Cloud represents a significant shift towards modernizing its IT infrastructure. This move is rooted in the need for agility and scalability, key features of cloud computing. By migrating to Guidewire Cloud, FMG is better positioned to handle unexpected events, like the recent Cyclone Gabrielle and Auckland Anniversary Weekend floods, which posed serious challenges. Scalability is particularly important in the insurance industry, where sudden spikes in claims can overwhelm traditional systems.

Cloud solutions offer cost efficiencies by reducing the need for extensive on-premise hardware and maintenance, shifting costs to a more predictable subscription-based model. This can free up capital for other strategic initiatives. Furthermore, the integration capabilities of cloud platforms allow for smoother updates and new feature rollouts, ensuring FMG remains at the forefront of industry standards.

In the long term, this migration will likely enhance FMG's customer experience by enabling faster response times and more efficient processing of claims. However, the transition phase may involve temporary disruptions and training requirements for staff, which could impact short-term operational efficiency.

Financial Analyst

The decision to migrate to Guidewire Cloud is a strategic move that could have significant financial implications for FMG. Firstly, it's important to consider the initial costs associated with such a transition, which can be substantial. However, these initial expenditures are generally offset by long-term savings in operational costs. Cloud services often reduce the need for ongoing hardware investments and lower maintenance costs, contributing to improved operating margins.

From an investor's perspective, this move signals FMG's commitment to future-proofing its business. By adopting modern technology, FMG is investing in its ability to adapt to changing market conditions and customer demands, which is important for sustainable growth. The ability to handle large-scale claims events more efficiently can also reduce the financial impact of such events, leading to more stable financial performance.

Additionally, aligning with a reputable provider like Guidewire can enhance investor confidence in FMG's strategic direction. The positive relationship with Guidewire, evidenced by their 12-year partnership, further underscores FMG's reliability and consistency in its business operations.

WELLINGTON, New Zealand & SAN MATEO, Calif.--(BUSINESS WIRE)-- FMG and Guidewire (NYSE: GWRE) announced that FMG has selected Guidewire InsuranceSuite on Guidewire Cloud to power its core business. A Guidewire customer since 2012, FMG will be migrating its on-premise installation of InsuranceSuite to Guidewire Cloud, aligned with its business strategy. Guidewire Cloud will enable FMG to simplify its IT operations to adapt quickly to changing market demands and customer expectations to support its continued growth.

“In 2023, Cyclone Gabrielle and the Auckland Anniversary Weekend floods combined to represent the largest claims event in FMG’s 119-year history. Honouring our promises to clients and helping them get back on their feet when the unexpected happens is what we are here for. Having the Guidewire system to lean on helped our employees across the Mutual respond effectively to our client’s needs in extremely challenging circumstances,” said FMG Chief Executive Officer Adam Heath. “Our move to Guidewire Cloud will not only enable FMG to meet continuously evolving client expectations and changes within the New Zealand/Aotearoa insurance market; it will also provide important capability, enabling FMG to respond quickly and effectively when we inevitably face another insurance event of scale.”

"We are privileged to support FMG's strategy of applying technology innovations to deliver better outcomes for both New Zealand's farming community and FMG's dedicated staff," said Guidewire Vice President for Asia Pacific Geoffrey Dirago. "FMG approaches this from an already impressive starting point and I'm excited to deepen our 12-year partnership in service of the farmers and growers of New Zealand."

About FMG

New Zealand's leading rural insurer, serving the insurance needs of rural communities for 119 years. A Mutual insurer owned by its Members with a deep commitment to the sustainability, wellbeing and prosperity of rural New Zealand.

About Guidewire Software

Guidewire is the platform P&C insurers trust to engage, innovate, and grow efficiently. We combine digital, core, analytics, and machine learning to deliver our platform as a cloud service. More than 540 insurers in 40 countries, from new ventures to the largest and most complex in the world, run on Guidewire.

As a partner to our customers, we continually evolve to enable their success. We are proud of our unparalleled implementation track record, with more than 1,600 successful projects, supported by the largest R&D team and partner ecosystem in the industry. Our marketplace provides hundreds of applications that accelerate integration, localization, and innovation.

For more information, please visit www.guidewire.com and follow us on X (formerly known as Twitter) and LinkedIn.

NOTE: For information about Guidewire’s trademarks, visit https://www.guidewire.com/legal-notices.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240610533237/en/

Diana Stott

Director, Communications

Guidewire Software, Inc.

+1.650.781.9955

dstott@guidewire.com

Ben Christie

Corporate Communications Specialist

FMG

0800 366 466

ben.christie@fmg.co.nz

Source: Guidewire Software

FAQ

What change is FMG making to its core business operations?

FMG is migrating its core business operations from an on-premise installation of Guidewire InsuranceSuite to Guidewire Cloud.

Why is FMG transitioning to Guidewire Cloud?

FMG aims to maximize agility, simplify IT operations, and support ongoing growth while adapting to market and customer changes.

When did FMG first partner with Guidewire?

FMG first partnered with Guidewire in 2012.

What significant events in 2023 influenced FMG's decision?

Cyclone Gabrielle and the Auckland Anniversary Weekend floods, which were the largest claims events in FMG's history, influenced the decision.

How will Guidewire Cloud benefit FMG?

Guidewire Cloud will help FMG meet evolving client expectations, adapt to market changes, and respond effectively to large-scale insurance events.