Coalition begins filing new insurance programs using its own carrier

In August, cyber insurance startup Coalition acquired Digital Affect Insurance Company, a property and casualty insurer licensed in all 50 states, from Munich Re Digital Partners US Holding Corporation.

Recently, Coalition has begun filing new SMB cyber insurance programs with different states using the new carrier, which is now called Coalition Insurance Company.

So far, the company has submitted programs in 14 states – Georgia, Connecticut, Nevada, Wisconsin, West Virginia, Alabama, Iowa, Indiana, New Mexico, Virginia, Kentucky, Arkansas, Pennsylvania, and Tennessee.

Based on multiple filings, the programs were derived using internal cyber loss experience over the prior 4+ years – “the historical experience was written on a mix of
admitted and surplus paper in all 50 US states and DC and has amassed over 300M in earned premium and 100,000 written policies.”

Bottom Line: “Up until this point, each cyber MGA worked with a number of supporting incumbents. The most well-funded cyber MGA to have arisen in the last five years, Coalition ($770 million in capital and a headcount of about 500), is now taking on risk, setting itself apart from rivals like At-Bay and Corvus.” – Via Coverager Research (Sep 28, 2022).