Shefi Ben-Hutta
Editor at Coverager

Coverager’s Week in Review: Dec 11-16, 2023

Written by ChatGPT based on Coverager Data

Top Stories

  • Aflac and Trupanion have decided not to enter the Japanese market with their pet insurance joint venture, as announced a year ago. Instead, they will focus on the North American market, which they see as larger and less penetrated. This decision comes despite Aflac’s $200 million investment in 2020 for a 9% stake in Trupanion and a US alliance for pet insurance sales. Initially, they planned to leverage Aflac’s brand and network with Trupanion’s expertise in Japan starting in the second half of 2023.
  • Swiss Re is acquiring Fathom, a UK-based company specializing in water-related risk analysis, to enhance its Reinsurance Solutions division’s data and risk capabilities, especially in flood perils. Founded in 2013 with around 50 team members, Fathom will maintain its brand and continue its research activities, aiming to complement Swiss Re’s expertise in natural catastrophe risks and further global resilience in water risk intelligence.

Layoffs

  • Cover Whale, a trucking insurance provider established in 2019 with over 6,000 appointed agents, has recently reduced its workforce by around 15%, affecting approximately 20 employees. This move, following a $15.5 million funding round in October 2021, aims to achieve profitability in preparation for a planned future fundraising effort.
  • Cruise, GM’s self-driving car unit, informed employees about layoffs affecting 24% (~900) of the workforce. This decision follows an operational pause in October.
  • Loop Insurance, following a $21 million Series A round in September 2021 and a subsequent bridge round, has made additional staff cuts.
  • Avanta Ventures, the venture capital arm of CSAA, is ceasing operations, which is expected to affect existing positions.

Tech Updates

  • Hiscox & Google Cloud: Hiscox collaborates with Google Cloud to develop an AI-enhanced lead underwriting model, significantly reducing the underwriting process time in the Sabotage and Terrorism lines.
  • Oneglobal Broking & Floodbase: Oneglobal partners with Floodbase to create flood risk transfer solutions in Asia, focusing on flood insurance.
  • OnStar Insurance & Guidewire: OnStar employs Guidewire Cloud for digital technology in personal auto insurance.
  • Prodigy Health Insurance Services & Gradient AI: Prodigy uses Gradient AI’s SAIL for group health underwriting.
  • Hexure & PaperClip: Hexure partners with PaperClip for enhanced data workflows and operational efficiency in L&H insurance.
  • Farmsure Underwriters & INSTANDA: Farmsure utilizes INSTANDA’s no-code platform for crop insurance.
  • AuguStar Life & iPipeline: AuguStar Life launches Virtus IUL II on iPipeline platforms, offering advanced solutions in whole life insurance.
  • KoverNow & Google/Apple Pay: KoverNow integrates its mobile app with Google Pay and Apple Pay.
  • Consilium & KYND: Consilium employs KYND’s cyber risk assessments for cyber insurance.
  • Allianz Commercial & AI Tool Incognito: Allianz UK develops Incognito, a machine-learning tool for detecting fraudulent claims, saving significant amounts in claims.

Partnerships

  • Upfort & Arch Insurance Company: Upfort, specializing in cybersecurity, collaborates with Arch Insurance in the US for cyber insurance.
  • Nirvana Insurance & SiriusPoint: Nirvana Insurance, supported by SiriusPoint, expands its US services in commercial auto
  • Spot Pet Insurance & AAA: AAA members have access to Spot Pet Insurance with special discounts in the US for pet insurance.

Insurance Investments

  • Guardz (cybersecurity and cyber insurance provider): Raised $18M in a Series A round on 12/13/2023. Based in Tel Aviv, Israel, and operating in the Cyber sector. Investors include ClearSky, George Kaiser Family Foundation, Glilot Capital Partners, Hanaco Venture Capital, and iAngels.
  • Mile Auto (pay-per-mile MGA): Secured $4.2M in a Series Unknown round on 12/11/2023. Located in Atlanta, GA, US, the company focuses on Personal Auto.
  • Medefy (healthcare engagement platform): Obtained $10M in a Series A round on 12/11/2023. Situated in Tulsa, OK, US, with investment from Advantage Capital and Mercury Fund.

Strategic Investments

  • Kapital (fintech solution for SMBs): Received $40M in a Series B round on 12/14/2023. Operating in the Financial Services industry in Mexico City, Mexico. Investors include Alumni Ventures Group, Cervin Ventures, MS&AD Ventures, Tribe Capital, and Tru Arrow Partners.
  • Susu (healthcare provider from France): Secured $4.9M on 12/14/2023. Based in the Health sector in Lyon, France. Investors include Al Mada Ventures, Five35 Ventures, Health54, INCO Ventures, Janngo, Launch Africa, Open CNP, Plug & Play Design, and Plug and Play.
  • NorthPoint Health & Wellness Center (wellness center): Awarded a grant (amount undisclosed) on 12/13/2023. Located in Minneapolis and funded by Blue Cross and Blue Shield of Minnesota.