Direct Life, which owns LifeQuote, is being purchased from Cardif Pinnacle Insurance Holdings, by its managing director Rob Quayle and sales and marketing director Neil McCarthy.
The Financial Conduct Authority has already approved the change in control and completion is expected at the end of October.
Chichester-based Direct Life employs more than 90 people, all of whom will continue to work for the company after the buyout.
Quayle (pictured) said the management buyout would help the company to build on its existing business as well as create new technology applications for the adviser market.
He added: "Cardif Pinnacle has been incredibly supportive of Direct Life during its 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."
For his part, McCarthy said: "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."
The chairman worries about finance getting in touch with its feelings
Cost of acquisition: £31m
Greg Camm temporary replacement
Plan ahead … do not rush
Adviser use of social media on the up