Global re/insurance brokerage Aon has announced that it has entered into an agreement to acquire CoverWallet, a digital insurance platform for small to medium-sized businesses (SMEs).
Aon previously made a strategic investment into the insurtech back in May 2019, and the firms agreed to work together in the SME space in Australia, later expanding the partnership into the US.
The broker explained that the acquisition will provide it with access to CoverWallet’s $200+ billion digital insurance market for SMEs, as well as the opportunity to leverage the platform in support of its 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.”
Following the acquisition, CoverWallet will join the portfolio of Aon’s New Ventures Group, which functions as a growth-stage capability focused on bringing new sources of value to clients.
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.
The insurtech will also working closely with leadership across Aon’s geographies and global solution lines to accelerate the growth of its core business.
“We started CoverWallet to reinvent commercial insurance,” said Inaki Berenguer, CEO and Co-Founder of CoverWallet. “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.”
“Aon’s shared vision means we can continue pushing the boundaries of innovation into new markets and new products at a greater scale,” Berenguer added.
Founded in 2015 by 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.
The firm also maintain strategic partnerships with a number of other re/insurers, including Chubb, CNA, Progressive, Starr, AIG, Zurich, The Hanover, Hiscox, Liberty Mutual, and AmTrust, among others.
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.