Baron Opportunity Fund on Guidewire Software, Inc.

Guidewire's InsuranceSuite is a mission-critical system of record for property and casualty insurers, handling policies, claims, premiums and payments. Because insurance contracts are complex, highly regulated and contained within the platform, the manager believes replacement risk is unusually low. The existing core-system opportunity is estimated at nearly $20 billion of annual recurring revenue, roughly 20 times Guidewire's current scale. Rather than disrupting Guidewire, the fund expects AI to expand the opportunity through new automation and intelligence layered onto the system of record. AI should also improve Guidewire's own productivity, helping the company support faster growth at lower cost.