Insurtech weekly news roundup: June 3
The company, launched in 2005, provides financial services for insurance and reinsurance, real estate services, cyber, and asset/wealth management.
The funding also upped Acrisure’s valuation to $23 billion.
A wholly owned subsidiary of the Abu Dhabi Investment Authority led the investment round. Guggenheim investments, on behalf of certain clients, and Oak Hill Advisors, also participated.
Greg Williams, Acrisure’s co-founder, CEO and president, said in prepared remarks that the investment validates the company’s direction and focus.
“This investment is a testament to our strategic direction and ability to innovate and adapt to the needs of our customers,” Williams said.
Coterie, an Ohio-based insurtech MGA, recently eliminated approximately 30 positions at the company, the Cincinnati Business Courier reported.
The cuts reflect a 20% workforce reduction, with software engineers and communications positions impacted by the decision, the article noted.
Co-founder and CEO David McFarland blamed the larger economic situation for the move, which comes as tech companies struggle on the stock market or to go public, interest rates rise, and inflation continues. Venture capitalists are also warning their portfolio companies to make their cash last longer than expected as the market tightening wears on.
McFarland said that the cuts come even as Coterie hits its goals, expands partnerships, and improves its technology.
The company has raised $75 million since launching in 2018, including a $50 million venture capital round in late October 2021.
Akur8/Duck Creek Technologies
Akur8 is linking up with Duck Creek Technologies to offer P&C insurance carriers pricing software products.
Specifically, the focus will be on providing a fully integrated software-as-a-service (SaaS) platform designed to streamline and modernize insurers’ rate-making process from data to production.
Akur8 develops and markets next-generation insurance pricing software using transparent machine learning (ML) technology, with target users including actuaries and predictive modelers. Duck Creek provides SaaS insurance systems.
The integration will be available for the companies’ mutual customers on the Duck Creek Content Exchange.
PassportCard, an insurtech focused on travel and healthcare insurance, has secured a US patent for its technology that allows real-time claims payouts through debit cards.
The new patent will provide IP protection and is expected to generate additional growth potential in North America, according to the investment announcement. Partnership discussions are also now underway via possible licensing and white labeling agreements.
The company claims to be the only one globally that offers real-time claims payment via rechargeable debit card in the event of any insurance-related scenario. Payments can be made to medical services, for medication, and/or compensation if bags are lost, delays occur, or other emergency situations erupt.
PassportCard’s system lets customers facilitate automated, instant processing of insurance claims without having to pay and then wait for reimbursement.
CyberCube is partnering with Kroll to launch a new cyber incident response service for the cyber insurance industry.
CyberCube develops and markets cyber risk analytics, and Kroll provides proprietary data, technology and clients to help clients manage risk, government and growth.
The joint effort involves CyberCube’s new Cyber Aggregation Event Response Service (CAERS), a cyber incident response service for clients of its SaaS products. Knoll will provide CyberCube’s clients with information and guidance on major cyber aggregation events, specifically frontline threat intelligence generated from thousands of incident response cases it handles annually.
Greenlight Re Innovations, part of Greenlight Capital Re, has invested in Garentii, a security deposit replacement insurance MGA platform based in Germany.
Neither side disclosed the specific investment amount.
Security deposits have typically been the way landlords obtained security against property damage and unpaid rent. Garentii, founded in Munich in 2021, is designed to provide an insurance-based alternative, offering security deposit replacement insurance within existing workflows when a lease is signed.
Simon Burton, CEO at Greenlight Re, noted in prepared remarks that security deposit replacement insurance has already seen some success in the US. He said the product is a great option to replicate in other markets.
Greenlight Re provides multiline property/casualty insurance and reinsurance through its licensed and regulated reinsurance entities in the Cayman Islands and Ireland, as well as its Lloyd’s platform, Greenlight Innovation Syndicate 3455. The company debuted its Greenlight Re Innovations Unit in 2018, designing it to support technology innovators in insurance and reinsurance by providing investment, risk capacity and access to a broad insurance network.