3 Things – Coalition, Layoffs & GloveBox – 07/08/2022

Hello Friends!  We hope everyone enjoyed the 4th of July and know that many of you had time off this week.  There was plenty of stuff to follow this week including Coalition raising capital and adding capacity, Insurtech layoffs and general slowdown and a customer experience startup:


Coalition $250M Woah!

Cyber insurer Coalition closed an impressive Series F round of $250M.  The self-described ‘world’s first Active Insurance company designed to prevent digital risk before it strikes’ is now valued at $5B and it would appear that traditional insurance capital continues to pour in.  Earlier in the week, they inked a deal with Allianz to back their non-admitted programs in the US and UK.  The combination of capital and long-term committed capacity will power further power their growth.  Another cyber provider Cowbell also announced a capacity deal.  The addressable cyber market is quite large and there is endless runway but uncertain risk.  The underwriters and actuaries must know how to price this stuff or else there could be trouble ahead.


Layoffs Continue for Insurtechs

There have been many reports of layoffs this week at insurtech players like Next, who Coverager has reported has reduced headcount by 17%, they are doing a good job of providing these updates.  We also found this helpful tracker.  You can sort by industry and look through ‘Finance’ to see the growing list.  This would be a sign that the insurtech bubble is at least deflating.  Many of these companies are preparing for the harder times ahead and should remain viable but we will continue to watch for M&A among insurtechs that need to combine to scale and survive.


GloveBox Series A

GloveBox, an independent agency customer experience platform, successfully completed a Series A round of funding in the amount of $5.5M.  Their technology allows independent agents to provide an app for their customers to access ID cards, make payments and other servicing functions for the policy holder.  In theory, this could help the agency relieve some of their servicing overhead and meet their digital native customers ‘where they are’ with regard to expectations for having an app to handle many of their policy term needs.  So, with this round of funding it will be worthwhile to watch how GloveBox grows and generates revenue, potentially becoming a standout insurtech or acquisition target of other agency tech rollup operations.

Thank you for following us, we appreciate your feedback and continued support.  Stay tuned for more info to come.  Until next time… stay safe, stay productive!