Our latest update on the insurtech community both in Massachusetts and beyond includes a new product announcement from Corvus Insurance, an IPO from Everquote, an investment in CoverWallet and the creation of a new holding company by TrustedChoice.com.
Corvus® Launches Smart Cyber Insurance™
Boston-based, broker-friendly InsurTech MGA Corvus Insurance has introduced a new comprehensive Cyber Coverage product. Dubbed “Smart Cyber Insurance”, this new product offers an innovative combination of a comprehensive and conventional Cyber Insurance policy along with ongoing IT Security Scoring.
At Corvus, we work to knock down the walls separating brokers and their clients from innovation. With Smart Cyber, we do this by monitoring IT security assets for vulnerabilities when we underwrite an account and on an ongoing basis. We produce actionable IT security recommendations based on the importance of the relevant digital assets. This aligns our interests with our brokers and policyholders”, said Phil Edmundson, founder and CEO of Corvus. “Together, we can use innovation to lower the cost of risk and make the world safer.”
This new policy is available to those organizations with no more than $1 Billion in annual revenue. The new Smart Insurance policies will be distributed by Corvus on a Managing General Agency basis via its partnership with New York-based Hudson Insurance Group. Policies.
Everquote Files $75 Million IPO
Cambridge-based Everquote, Inc. has filed for an IPO. The company, which calls its the largest online insurance marketplace in the country, has filed a Form S-1 with the U.S. Securities and Exchange Commission (SEC) which includes a proposed initial public offering of Class A common stock. The company plans to list its Class A common stock on the New York Stock Exchange under the “EVER” ticker symbol.
Founded in 2010 as a self-described “personal risk marketplace”, the company has always been data-driven with respect to creating its auto insurance marketplace. It also appears that going public had always been a part of its plan. In a 2016 interview with Bostoninno, the company’s CEO Seth Birnbaum as much as said so when discussing his company’s latest $23 million Series B funding round.
The Series B will also be used to provide some liquidity to founders, and early employees as part of what Birnbaum said is the company’s “pre-IPO strategy.” He declined to discuss any further the company’s IPO plans, but he said by providing some liquidity, it can help employees “continue to make progress in their personal lives while building the business for the long term.” He said providing some liquidity can also remove some pressure for a company to go public sooner.
In another telling quote from that interview, Mr. Birnbaum said, “We have a roadmap to get to $1 billion in revenue, and that’s what we’re focused on doing.”
Zurich Takes a Minority Stake in CoverWallet
On the heels of its announcement that it has partnered with The Hanover to provide the Worcester-based insurer with a B2B platform for its independent agent partners, CoverWallet also has announced that Zurich has taken a minority stake in the small commercial online insurance platform. The investment cements the commercial partnership started between the two companies earlier this year in Europe.
“Following our commercial agreement with Zurich, this investment is a testament to the value Zurich sees in CoverWallet, and the work we are doing to make insurance easy and convenient for small businesses in Europe,” said Inaki Berenguer, Co-Founder and CEO at CoverWallet. “Zurich has been a terrific partner as CoverWallet launched internationally, and we are thrilled they decided to invest in our company.”
According to the insurtech start-up, which officially launched in 2016, the company surpassed 800% annual revenue growth last year. In October 2017, the company raised $18.5 million in its Series B, bringing its total amount raised to more than $30 million at that time. In addition to Zurich, CoverWallet’s investors include Union Square Ventures, Index Ventures, Two Sigma, Foundation Capital, and Starr Companies.
TrustedChoice.com Launches New Insurtech Holding Company Ascendia
TrustedChoice.com has announced the launch of AscendIA; a new holding company focused on investing in insurtech innovations.
We couldn’t be more optimistic about the interest and opportunities we see in the marketplace,” said Bacciocco. “We believe AscendIA gives us a firm foundation to pursue our mission to promote a more competitive IA channel for the benefit of everyone concerned—independent insurance agents, independent agency companies, innovation-focused technology companies and, of course, insurance buyers everywhere.”
The venture is backed by the major ten investor partners of TrustedChoice.com and will be focused on expanding “IA-friendly insurtech initiatives” outside of the TrustedChoice.com consumer platform.
Through strategic investment and partnerships, we see tremendous opportunities to fuel future success for the IA channel with insurtech solutions that keep independent agents at the heart of the insurance buyer customer experience,” said Bob Rusbuldt, President and CEO of the Independent Insurance Agents & Brokers of America and Chairman of the AscendIA Group board.
As part of its official launch, the AscendIA and TrustedChoice.com teams recently welcomed a group of 25 thought leaders to Milwaukee to talk about digital innovation in the IA channel. The group was comprised of innovation leaders from insurance companies, independent agents, national and state trade associations, industry consultants and insurtech startups.