Tom Needs on Epic: ‘Consolidating nature of UK broking meant competition gained market share by default’

Tom Needs has revealed that “the consolidating nature of UK broking meant the competition was gaining market share by default” following Applied Systems’ decision to withdraw Epic from the UK.

Needs, chief executive for Applied Systems Europe, also said making the decision to withdraw was “very difficult”, but that the the “cost and journey were too long and too significant to make it worthwhile”.

Epic is a single, integrated and open application that provides capabilities to better manage customer relationships, sales opportunities, eTrading, financial accounting and policy administration.

It launched several years ago in the UK with lighthouse customer A-Plan, which is now Howden.

Speaking about entering the UK, Needs told Insurance Times: “The UK market was dominated by a handful of players, so our over-arching ambition was to provide real choice. Our desire was to replicate the success of our US business which has thrived off the back of outstanding service to clients, who in turn pass on the benefits to their own customers.

“We reached a significant milestone by partnering with some of the largest UK brokers. At the time, our model was built around the personal lines and High Street broking market.

“However, we realised the market was shifting away from pure personal lines, towards trading high volumes through the aggregators.

“There were few traditional-looking personal brokers out there. We needed to adapt Epic to a wider market reach, particularly composite brokers trading both personal and commercial, so we consolidated to around 100 broker customers and secured commitment from mainstream UK insurers.”

Exit decision

However, last week (10 June 2025), Applied Systems announced it was withdrawing Epic from the UK after conducting a strategic review.

It felt that there were a series of difficult challenges to navigate in the UK broker management system (BMS) market, including complex product requirements and steep competition.

Applied Systems also said it had been especially challenging to align with insurers on agreements to distribute their products in the commercial lines segment.

Needs continued: “The challenge was always building our panel to a size appealing enough to win over more brokers.

“At Applied Systems, we want to be in the market to win. However, the consolidating nature of UK broking meant the competition was gaining market share by default.

“Ultimately, the cost and journey were too long and too significant to make it worthwhile, so we reached the very difficult decision to withdraw Epic from the UK market.

“We care about our customers and partners in the industry and want to do right by them, which is why we commit to maintaining the high level of service that we take pride in and following through with existing contracts until expiration.

“Our commitment to our customers and colleagues extends beyond those contracts, however. It’s a duty of care. Applied Systems has been in the business for 40 years and we have deep international relationships that we strongly value. We will do the right thing by all our brokers, insurance partners, integrators and colleagues as we always have. “

’Positive future’

Needs added that in situations like these, “it’s important to find lessons and remember our humility”.

“Perhaps we could have adapted our platform and deepened the relationships at a faster pace,” he said.

“We must also remember the reason why we began this journey. The UK is crying out for choice - an alternative. This was clear when I joined Applied Systems four years ago and it has been a recurring message I have received from the many conversations with brokers I have had over the past couple of days.

“However, the industry cannot rely on one company to unilaterally provide choice. It takes many players from various segments of the market to commit to creating choice.

“We still have a positive future ahead of us serving the UK market and I remain hopeful that the UK insurance industry, which desperately wants to foster greater innovation, will show a greater willingness to embrace alternatives and collaboration.”

As part of the strategic review, Applied TAM, Applied Rating Hub and Applied RiskHandler products in the UK will continue to be supported and the software house will continue to invest in and operate its business in Ireland.

Applied Systems will also redirect investment into markets and products where business results are accelerating following its decision to withdraw Epic from the UK.

Needs concluded: “On a final note, I am proud that we have always operated with integrity and honesty as a business. We make efforts each day to be a fresh, innovative and open alternative to the competition.

“Although this is a difficult business decision, I am very aware that people are at the heart of every business – and ours is no exception. I am very proud of what we have achieved with our culture, technology, people and approach, and am confident that we will keep delivering value and leading change in the industry.”