Direct Life is being acquired by its managing director Rob Quayle and sales and marketing director Neil McCarthy.
The firm, which owns LifeQuote, is being purchased from Cardif Pinnacle Insurance Holdings.
The Financial Conduct Authority (FCA) has approved the change in control, and completion is expected at the end of October.
Direct Life employs over 90 people in Chichester and not only provides a whole of market protection portal, but also a fully outsourced case management service for advisers.
Additionally, it provides a range of technology and support services for online protection distribution.
The management buyout allows the company to build on its existing business in addition to creating new technology applications for the adviser market.
Quayle said: “Cardif Pinnacle has been incredibly supportive of Direct Life during their ownership, building a market leading technology platform. We have taken over all of the assets and reserves in the business meaning we are well resourced and fully capitalised as we enter this next stage in Direct Life’s development.
“I am personally very excited to be leading the new venture along with Neil and our fantastic management and operational team.”
McCarthy added: “The new business will be run by a team whose sole focus is supporting our distribution channels and increasing the take up of protection and related products. Advisers will benefit from better technology and outsourced support.”