The round was led by NAventures, National Bank of Canada’s corporate venture capital arm with participation from TELUS Global Ventures, Diagram Ventures, Portage, and Highline Beta. The funding from some of Canada’s leading investors represents a pivotal milestone for Walnut as it accelerates efforts to modernise and streamline insurance distribution.
The insurtech will use the newly secured capital to enhance its technology platform for insurers and brokers, expand its engineering team, and form new partnerships. The company is also poised to enter new markets, capitalizing on the massive opportunity to effectively deploy replicable embedded insurance solutions.
Diagram has recently expanded its strategy beyond its well-known venture studio model to include external investments. Walnut is amongst the first few of this kind in the Diagram portfolio, highlighting their confidence in the team’s potential to revolutionise the insurance landscape.
Walnut’s approach to insurance distribution leverages cutting-edge technology and strategic partnerships to create a sustainable and efficient business model. By embedding insurance products directly into the products and platforms of enterprise businesses and financial institutions, Walnut removes significant marketing costs and drives insurance distribution through partner-driven channels. This strategy not only supports a more sustainable distribution strategy for insurers, but also ensures that consumers receive tailored insurance products when and where they need them.
“The insurance industry has yet to complete its digital transformation, with many insurers and brokers still operating in traditional, non-digital fashions. We aim to leapfrog traditional digitization and support a modern API-enabled embedded distribution strategy” said Adrien Niblock, CPO and Co-founder of Walnut.
“Our embedded insurance platform captures distribution, supports insurers and brokers with embedded-first infrastructure, and delivers products to our customers in a compliant manner. This funding allows us to expand our technology stack, scale our operations, and bring innovative insurance solutions to both insurers and businesses looking to drive new revenue streams.”
Walnut’s Solution:
- Digitises products and enables API driven product delivery
- Drives compliant and effective multi-channel delivery
- Enables partner co-branding and headless insurance distribution
- Delivers instant quote and bind experiences
- Supports policy delivery and management
According to reports, Walnut’s platform enables partners to quote and enroll customers into almost any insurance product in real-time within co-branded consumer experiences, advisor driven processes or headless via API. Walnut offers a flexible and efficient solution for integrating insurance into various digital ecosystems within 30-90 days where typically this can take years. This comprehensive approach ensures a seamless multi-channel delivery, enhancing the customer experience and leading to effective product delivery.
The embedded insurance industry represents a $3 billion new addressable market opportunity. Walnut’s fast time to deployment provides a significant advantage in capturing this market. Insurance is often considered the sleeping giant of this migration, with more than twice the profit margin of credit cards.
For insurers and brokers, Walnut’s platform provides significant benefits, such as the ability to profit share versus front-loading marketing costs, improving risk management, and unlocking untapped channels. Partners benefit from increased ARPU (Average Revenue Per User), deeper relationships with their customers, and a reduction in churn. For consumers, Walnut’s solution ensures they receive insurance at the right time with reduced effort to purchase, facilitated by data-driven processes and consolidated brand experiences.
While Walnut supports delivery of many insurance products, in the current macroeconomic climate, with increasing loan defaults and financial instability, Walnut’s focus on loan and debt protection products is timely. These products are designed to safeguard consumers against income loss, providing crucial support in uncertain times. As mortgage renewals loom for many, Walnut’s creditor insurance offerings aim to protect both consumers and financial institutions.
“Walnut’s unique approach to embedded insurance distribution aligns with our vision of supporting transformative technologies that have the potential to drive significant industry change,” said François Lafortune, CEO of Diagram Ventures.
“We are proud to support Walnut in their next phase of growth. Our ongoing investment and partnership reflect our confidence in their vision and execution”, said James Povitz, Principal at NAventures.”
Source: Walnut
