Deals and mergers continue apace across the global insurance industry, from small niche broker acquisitions by bigger VCs or MGAs, to insurtech partners being absorbed into big corporate groups, the speed of change means that more key players will probably come to dominate certain sectors like commercial, motor, home, healthcare etc in various countries. There’s a big battle ahead over voice tech/smartphone incepted, on-demand, PAYG product lines as well. Meanwhile here’s the latest from AON;
Aon plc (NYSE: AON), a leading global professional services firm providing a broad range of risk, retirement and health solutions, announced today that it has entered into a definitive agreement to acquire CoverWallet, the leading digital insurance platform for small and medium-sized businesses.
The acquisition provides Aon with additional access to the fast-growing, $200+ billion premium digital insurance market for small and medium-sized businesses, as well as the opportunity to leverage CoverWallet’s platform to develop and scale innovative digital client experiences that support the firm’s Aon United growth strategy.
“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. “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.”
Post-close, CoverWallet will join the growing portfolio of Aon’s New Ventures Group, which functions as a growth-stage capability focused on delivering new sources of value to clients that expand Aon’s addressable market. As part of the New Ventures Group portfolio, CoverWallet will apply its data and analytics capabilities, technology, and operational expertise to the broader Aon digital client experience, while also working closely with leadership across Aon’s geographies and global solution lines to accelerate the growth of CoverWallet’s core business. Formed in 2018, Aon’s New Ventures Group has experienced significant growth in its first year having developed an innovative portfolio of new client solutions, including Aon’s Intellectual Property Solutions and Public Sector Partnership offering.
“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, NY, and Spain. CoverWallet also maintains many strategic partnerships with top insurance companies, including Chubb, CNA, Progressive, Starr, AIG, Zurich, The Hanover, Hiscox, Liberty Mutual, and AmTrust, among others. Earlier this year, CoverWallet and Aon announced an initial commercial partnership, launched a pilot in Australia which later expanded to the U.S, and worked together to build additional pilot programs in the U.S.
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.