Risk management technology provider Brown & Brown acquired the assets of US-based digital insurance marketplace CoverHound on Monday for an undisclosed amount, allowing several insurance firms to exit.
CoverHound runs an online marketplace that allows users to compare quotes from a range of different providers, while its CyberPolicy subsidiary concentrates on business insurance.
Steve Boyd, senior vice-president of technology, innovation and digital strategy for Brown & Brown, said: “We see CoverHound as an important platform for Brown & Brown’s expansion into the digital insurance marketplace while at the same time helping our traditional businesses to continually deliver an exceptional customer experience.
“By combining CoverHound with our expertise and market strength, we will be able to meet more customers where they are and provide them with the appropriate coverage for their unique exposures.”
The transaction follows $112m in funding, including a $58m series D round in February 2019 led by Hiscox and backed by fellow insurance providers Chubb, MS&AD Insurance Group and Aflac, the latter through its Aflac Ventures unit.
Insurance firm Ace Group led a $33.3m series C round for the company in 2015 that included fellow insurer American Family’s investment arm, American Family Ventures, in addition to RRE Ventures, Blumberg Capital, Core Innovation Capital and Route 66 Ventures.
American Family Ventures joined RRE Ventures, Blumberg Capital, Bullpen Capital, Core Innovation Capital, Tugboat Ventures, Route 66 Ventures and Thomas Lehrman to provide $14m for CoverHound earlier the same year.
The company’s earlier investors included Blumberg Capital and Bullpen Capital as well as media group Source Interlink Companies.
