American Family Insurance, based in Madison, Wisconsin, acquires insurtech company Bold Penguin which serves small businesses.
The Bold Penguin digital exchange is used by insurance agents, brokers and other distributors to match, quote, and link policies from a range of insurers. Bold Penguin reduces the complexity of purchasing insurance for small businesses.
The Columbus, Ohio-based insurtech company will become a subsidiary of the American Family Insurance group, pending regulatory approval and closure.
Financial details of the transaction were not disclosed.
The announcement stated that Bold Penguin would maintain its name and business model, “operating with an unwavering commitment to neutrality and confidentiality with its insurer, broker and agent clients.”
Ilya Bodner, Founder and CEO of Bold Penguin, Ben Clarke, Co-Founder and Chief Data Officer, and other executives and employees will remain with the company.
Bill Westrate, President and CEO-elect of American Family, welcomed the founders and employees of Bold Penguin: “Like American Family, they believe that innovating and collaborating with others is the best way to meet the diverse needs of people. clients.”
Fabian Fondriest, president of American Family Direct companies that sell products online and through partners, said Bold Penguin will have “the autonomy and support to fulfill its important roles with small businesses and partners.”
Last October, Bold Penguin acquired RiskGenius as part of a deal that insurtechs from both business lines say will help expand their reach more than they have been able to so far, Carrier Management reported. RiskGenius, which also debuted in 2016, offers software that uses artificial intelligence to assess a variety of emerging risks across an entire portfolio of insurance policies.
The company said RiskGenius was part of the deal.
Additionally, a year ago, Bold Penguin purchased xagent, an independent, single-entry, multi-quote platform for the standard and surplus line commercial insurance market.
American Family is the 13th largest P&C insurance group in the country with $ 11.5 billion in direct written premiums at the end of 2019. Auto and home insurance accounts for the bulk of its sales, followed by commercial insurance , with a strong emphasis on the protection of the little ones. and mid-size business and rental owners.
“At the end of the day, it’s about the small business customers and their communities,” Westrate said. “We recognize the importance of small businesses and we want to do our part to support them.”
American Family has announced plans to develop the Bold Penguin platform which offers options with multiple insurers. In addition, American Family agency owners will be able to use the platform with a suite of products specifically available to them.
Bold Penguin launched its exchange in 2016 to improve the links between small businesses, insurance agencies, and insurers, reducing the complexity of the insurance buying process for all parties. American Family Ventures, American Family’s venture capital firm, was an early investor in Bold Penguin.
Since its inception, Bold Penguin has raised over $ 50 million in capital.
The deal is part of a recent series of mergers and acquisitions related to insurance technology and insurtech.
In December, leading insurance technology company Applied Systems agreed to acquire digital insurance technology startup Indio Technologies, an initiative that will allow Applied Systems to integrate Indio into its branch management system. popular Epic.
In November, global insurance broker Aon agreed to acquire CoverWallet, a leading digital insurance platform for small and midsize businesses, and insurance broker Brown & Brown acquired CoverHound, a market digital property and casualty insurance; and CyberPolicy, the small business subsidiary of CoverHound.
In August, Insurance Technologies Corp. (ITC), a provider of benchmarking and management software, has acquired Columbus, Ohio-based Smart Harbor, which provides digital technology products and services to insurance agents.
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