- Digital Affect Insurance Purchased By Us Based Cyber Insurer Coalition
Digital Affect Insurance Purchased By US Based Cyber Insurer “Coalition”
By Aarti Dhapte, 15 November, 2022
On 16th August 2022, Coalition, a US-based cyber insurtech, received regulatory approval to acquire Munich Re Digital Partners U.S. Holding Corporation's Digital Affect Insurance Company, a P&C insurer licensed in 50 states. The acquisition allows Coalition to offer insurance policies through its carrier. The company currently provides coverage like cyber, technology errors & omissions, D&O, and other executive risk policies through partnerships with carriers like Allianz, Swiss Re, Vantage, and Zurich.
According to a press release from Coalition's head of insurance, Shawn Ram, "This strategic decision permits Coalition to increase the scope of their market-leading active cyber insurance offering coupled with other accepted insurance products." The acquisition is a logical next step in their development. It will enable them to continue pushing the boundaries of innovation in executive risks insurance, cyber insurance, and other areas while better serving the broker partners and consumers.
Furthermore, Coalition raised USD 250 million in Series F fundraising earlier this year, valuing the business at USD 5 billion. Allianz X, Valor Equity Partners, Kinetic Partners, and other current investors took part in the round. The business claimed to be amid a "wave of growth" at the time, with run-rate GWP (gross written premium) topping USD 775 million and revenue growth over the previous year approaching 200%. In addition, Dr. Nazim Cetin, CEO of Allianz X, stated in a news release announcing the recent funding that Coalition's active, tech-based approach to cybersecurity and cyber insurance has shown to be profoundly influential, which is also reflected in its outstanding financial performance. The trends influencing the significance of cyber defense are unabating. They believe that the best way to deal with cyber threats to organizations now and in the future is to take an active approach.