Global insurance broker Aon has agreed to acquire CoverWallet, a leading digital insurance platform for small and medium-sized businesses.
The acquisition provides Aon with additional access to what it sees as a fast-growing, $200+ billion premium global digital insurance market for small and medium-sized businesses.
It also provides Aon with the opportunity to leverage CoverWallet’s platform to develop and scale other digital client experiences.
No purchase price was disclosed.
“We are excited to combine Aon’s expertise in data and analytics and global distribution with CoverWallet’s market-defining platform to create new sources of value for our clients,” said Greg Case, CEO of Aon, in prepared remarks. “CoverWallet’s culture of innovation is transforming the insurance landscape, and together we have the opportunity to further strengthen and expand the application of their digital client experience.”
“We started CoverWallet to reinvent commercial insurance. By building our customer-centric platform and leveraging advanced data science, beautiful design, and state-of-the-art technology, we have been able to simplify insurance,” said Inaki Berenguer, CEO and Co-Founder of CoverWallet. “Aon’s shared vision means we can continue pushing the boundaries of innovation into new markets and new products at a greater scale.”
Founded in 2015 by technology entrepreneurs Inaki Berenguer and Rashmi Melgiri, CoverWallet has more than 300 employees across engineering, digital marketing, data science, business intelligence, design, and operations, with offices in New York City, Rochester, N.Y., and Spain.
In May, Aon began partnering with CoverWallet to serve clients in Australia. At that time, the parties also said they were planning on expanding this partnership to additional geographies, including the United States. In conjunction with this agreement, CoverWallet received a strategic investment of an undisclosed amount from Aon.
The investment from Aon added to the $40 million CoverWallet has previously raised since 2016 from investors including Union Square Ventures, Index Ventures, Two Sigma Ventures, and Foundation Capital, as well as Zurich Insurance Group and Starr Companies.
CoverWallet has partnerships with top insurance companies including Chubb, CNA, Progressive, Starr, AIG, Zurich, The Hanover, Hiscox, Liberty Mutual, and AmTrust, among others.
CoverWallet has also made its technology available to carriers and other agencies. Several insurers such as Zurich Insurance have launched their own digital agencies for small and medium businesses using CoverWallet’s technology.
Its digital competitors include Insureon and CoverHound in the small business market.
Post-close, CoverWallet will join the growing portfolio of Aon’s New Ventures Group. As part of the New Ventures Group portfolio.
The transaction is expected to close during the first quarter of 2020, after which the CoverWallet organization will go to market as CoverWallet, an Aon company.
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