A cyber insurance managing general agency and security company said it has raised $175 million to accelerate its growth and global expansion. The firm said it will use the funds to expand internationally as well as into other commercial insurance beyond cyber.
Index Ventures led the funding with participation from General Atlantic and the company’s existing investors, valuing Coalition at $1.75 billion.
“Our ambitions now extend beyond cyber insurance. Nearly one in ten Fortune 500 companies is an insurance company, yet most were founded before World War II,” said Joshua Motta, CEO and co-founder of Coalition. “With this funding, we plan to bring our technology-driven approach to other lines of commercial insurance as we seek to build the digital insurance company of the future.”
In addition to cyber and technology errors and omissions, policies backed by insurers Swiss Re, Arch, Lloyd’s of London and Argo, Coalition provides a risk management platform, predictive analytics, and incident response services to help businesses anticipate and manage cyber risks.
The company claims that a lower percentage (1.6%) of its policyholders file cyber insurance claims than the average (6.2%) industrywide.
The firm expanded into Canada in 2020 and said it will begin to expand into multiple international markets.
The coalition provides companies in the U.S. with up to $15 million of cyber and technology insurance coverage and up to $20 million in Canada.
“Despite a surge in cyber-attacks and ransomware, Coalition has delivered industry-leading loss performance by leveraging differentiated technology across the policy lifecycle,” said Paul Stamas, managing director of Financial Services at investment fund General Atlantic.
Since its founding in 2017, Coalition has raised $300 million from technology investors including Index Ventures, General Atlantic, Ribbit Capital, Vy Capital, Hillhouse Capital, and Valor Equity Partners, among others.
The coalition is not alone among digital insurance platforms in attracting recent investor interest.
Last week, another commercial lines startup that also offers cyber coverage, Corvus Insurance, raised $100 million in a round valuing the company at $750 million. Corvus, launched in 2017, is an MGA built around artificial-intelligence-driven risk data.
Also last week, Cowbell Cyber, another cyber insurance MGA, nailed down $20 million in new venture capital financing from multiple investors. Cowbell also uses a digital platform that relies on artificial intelligence.