Steadfast has acquired Melbourne-based insurance software developer InsuranceConnect, which owns and operates the UnderwriterCentral underwriting system, for an undisclosed amount.

The purchase is understood to be causing concern with some major users of UnderwriterCentral, which includes among its 30 clients AUB-owned Sura.

Steadfast MD and CEO Robert Kelly told insuranceNEWS.com.au InsuranceConnect will continue to operate as a separate business in the group’s stable of brands.

All 20 staff will be retained, and InsuranceConnect founder Andrew Bennett will remain as a consultant.

UnderwriterCentral’s features include multi-option quotation management, policy and claims administration, document and attachment management functions, fully automated renewal processing, online payment gateways and integration with third party and partner systems.

The acquisition, which Mr Kelly says was at Steadfast’s initiative, was concluded on April 15.

Steadfast accounts for 40% of InsuranceConnect’s revenue.

Mr Kelly told insuranceNEWS.com.au he has contacted “two or three” of Steadfast’s competitors which are also InsuranceConnect clients to assure them the business will be operated as a separate entity to avoid conflicts of interest.

“Our track record shows that we do business in an ethical manner,” he said.

However, Mr Kelly told insuranceNEWS.com.au that Steadfast would release anyone out of their contract if they feel there's a conflict of interest.

Steadfast has had its eye on InsuranceConnect for some time. It first held talks with Mr Bennett in 2010 and negotiations to acquire the company got as far as due diligence before being abandoned at the 11th hour for reasons never disclosed.

Before Steadfast, IBNA was also understood to be a suitor.

InsuranceConnect was in a joint venture with IBNA to enhance the broker network’s wholly owned broker management platform BrokerCentral, which was designed by Mr Bennett.

That relationship soured, however, and IBNA pulled out of the joint venture at the end of 2011.

UnderwriterCentral complements Steadfast’s Virtual Underwriter platform which allows comprehensive comparisons on coverage, benefits, limitations and price of policies available from a range of insurers.