Investment in insurtech and the insurance industry as a whole, has lost pace significantly since 2021. This period of heady digital transformation, boosted investment excitement in the industry to heady levels, and many experts have stated that this ‘bubble’ period was bound to deflate, and return to a state that encourages healthy and competitive market growth.
This month, we’ve witnessed a number of healthy investment events, some of which show very impressive market confidence in everything that the insurance industry has to offer.
10) NOW Insurance
Amount: Undisclosed
CEO: Philip Cabaud
Launched in 2019 by industry veteran Philip Cabaud to provide a best-in-class service for physicians and healthcare professionals, NOW Insurance, delivers a range of customisable, affordable and flexible coverage options that meet the needs and requirements of modern physicians and healthcare providers. By leveraging advanced, next generation technologies such as predictive analytics and machine learning, the insurtech has transformed previously intricate and complex insurance processes into seamless, frictionless customer experiences.
Proceeds from the latest capital raise will be used for launching its new suite of medical malpractice products, scaling their platform, and expanding distribution networks. Chief among these is the introduction of a new portal for brokers. Brokers will soon be able to submit and bind medical malpractice coverage online for physicians.
9) Square Insurance
Amount: US$1 million
CEO: Sunil Kumar
India-based Square Insurance Brokers, a firm authorised by IRDA under the Insurance Brokers Regulations of 2002, recently raised US$1million in a funding round, with the investment led by Recur Club, a well-known revenue-based financier, according to a report from Startup Story Media.
The funds raised will be directed towards enhancing the FinTech’s technological backbone, ramping up its operational footprint, and rolling out significant marketing and advertising campaigns.
Square Insurance launched in 2017, and since then, the company has carved a niche for itself in offering crucial risk management via insurance services. Driven by a strong commitment to bridge the gap between the insurance needs of customers and the actual coverage they get, Square Insurance has consistently championed a transparent method, ensuring its solutions align perfectly with customer demands.
With the new investment, the company reiterates its dedication to its mission. The focus remains on providing personalised insurance solutions leveraging state-of-the-art technology. The objective is crystal clear: make it easier for Indian consumers to access the most suitable insurance policies.
8) Irys Insurtech
Amount: US$3.5 million
CEO: Margeaux Giles
Earlier this month, Irys Insurtech, Inc. successfully concluded a seed funding round, amassing an impressive US$3.5 million.
This funding injection signals the arrival of a pioneering insurtech contender, challenging the dominance of entrenched legacy agency management systems.
The round was led by Markd, renowned for its commitment to driving advancements in the insurtech realm. This strategic investment ushers in an exciting new chapter, poised to redefine the conventional paradigms of insurance distribution processes.
According to reports, the seed round will fuel the scaling of the platform and implementation team, thereby providing the industry a much-needed escape route from the confines of traditional systems.
7) SureIn
Amount: US$4.3 million
CEO: Daniel Dierkes
The funding round was led by Pact VC and will be used to further develop the SureIn platform, improve product automation across the lifecycle and expand the range of insurance products to healthcare and pension in existing and new verticals such as professional services and startups.
SureIn will also use the funding primarily to expand its team in technical areas to build out the platform, improve product automation and increase operational efficiency.
Since its launch in early 2022, SureIn has expanded into multiple industries, while the platform has quickly generated over €1M in gross written premiums. The company has supported a range of businesses of different sizes and is close to achieving its 1,000th SMB client.
6) SafetyCulture
Amount: US$21 million
CEO: Luke Anear
Australian insurtech unicorn, SafetyCulture recently announced its US$21.7 million funding raise in a round led by Morpheus Ventures, Marbruck Investments and Index Ventures.
SafetyCulture specialises in safety at work products and services, also offers customers access to tools that help them perform checks, train staff, report issues and identify opportunities to improve.
The insurtech is currently holding a robust market position, and data reveals the startup took $84.4 million in revenue in the last financial year, – a 32% rise on the previous year.
5) FINEOS
Amount: US$40 million
CEO: Micheal Kelly
FINEOS has impressively clinched a $40m investment to fortify its financial foundation in its latest funding drive.
The news follows a new partnership with The Guardian Life Insurance Company of America.
The funding sum consists of the following: a full $35m institutional placement and a conditional $5m placement exclusively from FINEOS’ founder and CEO, Michael Kelly.
Launched in 1993, FINEOS focuses its efforts on devising software solutions tailored for life, accident, and health insurance carriers. Their influence is undeniable, with over 50 global clients, counting industry heavyweights like Aviva, APL, Amica, FBD, and New Ireland amongst their clientele.
4) Resilience
Amount: US$100 million
Resilience is a leading cyber risk solution company headquartered in San Francisco that successfully raised $100 million in a Series D equity financing round earlier this month
The funding will accelerate the company’s global expansion and facilitate the adoption of its revolutionary cyber risk platform, the Resilience Solution, which was launched earlier this year. Intact Ventures, an affiliate of Resilience’s primary capacity provider Intact Insurance’s underwriting companies, led the funding round, with participation from Lightspeed Venture Partners, General Catalyst, and Founders Fund.
3) SpyCloud
Amount: US$110 million
CEO: Ted Ross
SpyCloud, a leading force in operationalising identity analytics for automating digital identity protection, has secured US$110 million in its latest funding drive.
The Austin-based company has a robust marketplace reputation, having garnered trust from over 500 industry leaders, with half of the Fortune 10 relying on its cutting-edge solutions to combat diverse cyber threats.
According to reports, SpyCloud’s technological advantage lies its proprietary engine, an instrumental component that gathers and scrutinises data from the depths of the criminal underworld.
The funding will be used to drive SpyCloud’s growth strategies. These include accelerating innovations across their Enterprise Protection, Consumer Risk Protection, and Investigations use cases.
2) Liberty Co Brokers
Amount: US$340 million
CEO: Bill Johnson
In an impressive sweep this month, Liberty Co. Brokers secured US$340 million in Funding Led by J.P. Morgan, RBC and Fifth Third Bank.
The Liberty Company is a prominent property/casualty insurance broker headquartered in Florida and is renowned as one of the largest in the US.
Liberty has been on an acceleration drive over the past two years, with the company securing eighth position on OPTIS Partners’ coveted list of the top 20 acquirers in 2022 after acquiring three dozen companies to expand its market presence.
A statement released by Liberty, said: “In addition to M&A activity, Liberty intends to use this capital to continue to build out its resources to drive more organic growth though its practice groups and industry specialisations, MGA/program offerings, employee benefit and human capital management resources, risk management services and other initiatives.”
1) World Insurance Associates
Amount: US$1 billion
CEO: Rich Eknoian
Breaking all investment records by quite a significant margive this month, is World Insurance, which has been pledged US$1 billion in investment funding by investment banking giant, Goldman Sachs.
News reports state: “World Insurance Associates LLC (“World”) has announced that Goldman Sachs Asset Management (“Goldman Sachs”), through its Private Equity and Hybrid Capital teams, have entered into a definitive agreement to make a major investment of more than US$1 billion in the company.
“Across both investments, Goldman Sachs will be investing more than $1 billion into World, which currently has a total enterprise valuation of approximately $3.4 billion. World’s management team and employee shareholders will remain major investors alongside Charlesbank and Goldman Sachs.”
“We are extremely excited to have a leading global financial institution like Goldman Sachs join Charlesbank at this juncture in our partnership,” said Rich Eknoian, World’s CEO and founder. “The major investment Goldman Sachs is making in World will be an accelerant for us, and we intend to take full advantage of it. As we continue to aggressively execute our growth plan, this is momentous affirmation that our unique, integrated business model is working.”
