Item 1.01 Entry into a Material Definitive Agreement.

On August 27, 2008, Majestic Insurance Company ("Majestic"), a wholly-owned subsidiary of CRM Holdings, Ltd. (the "Company"), entered into a License and Service Agreement with Fiserv Insurance Solutions, Inc. This License and Services Agreement is an integral part of the Company's plans to replace components of its data processing systems, providing the Company with the enhanced technology necessary to remain competitive. The Company expects the implementation of this technology will increase the effectiveness and efficiency of its operations and facilitate future growth.

Under the License and Service Agreement, Majestic, on behalf of itself and its affiliates, is licensing integrated core technology and ancillary systems from Fiserv. The core technology being licensed includes an integrated policy administration software system that provides processing for workers compensation insurance, including billing, underwriting, and policy administration functionality. Fiserv is obligated to provide professional services for installation of the technology and training, and maintenance support services. The agreement provides for an initial five year license and maintenance period and automatic renewal of the maintenance period after the initial five year term unless either party notifies the other of its intent not to renew. Majestic is subject to termination fees for early termination of the initial term. The Company estimates total payments under the License and Service Agreement will be approximately $5.6 million, most of which will be capitalized, and expects to finance most of this cost through a capital lease arrangement.

A copy of the License and Service Agreement will be filed as an exhibit to the Company's Quarterly Report on Form 10-Q for the quarter ending September 30, 2008.

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