Post-acquisition, CoverWallet will be joining the portfolio of Aon's New Ventures Group


CoverWallet office in Rochester, New York. (Credit: coverwallet)

UK-based professional services firm Aon has agreed to acquire CoverWallet, a digital insurance platform that serves small and medium-sized businesses.

Financial terms of the acquisition were not revealed by the parties.

The announcement of the deal follows the launch of a digital platform for small and medium enterprises (SMEs) in Australia by the two companies in May 2019. At that time, Aon also made an undisclosed investment in CoverWallet.

Headquartered in New York City, CoverWallet is an insurance technology company, which is licensed in all the US states and Europe.

What Aon expects from CoverWallet acquisition

Aon said that the acquisition of the insurtech firm gives it further access to the fast-growing, $200bn plus premium digital insurance market for small and medium-sized businesses.

Furthermore, the acquisition gives Aon scope to utilise CoverWallet’s platform to develop and scale innovative digital client experiences that underpin the Aon United growth strategy.

Aon CEO Greg Case said: “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.

“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.”

Post-acquisition, CoverWallet will be joining the portfolio of Aon’s New Ventures Group. Established in October 2018, the New Ventures Group focuses on accelerating the creation of new sources of value for Aon’s clients.

CoverWallet, as part of the New Ventures Group portfolio, will apply its data and analytics capabilities, operational expertise, and technology to the larger Aon digital client experience.

CoverWallet CEO and co-founder Inaki Berenguer said: “We started CoverWallet to reinvent commercial insurance. 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.”

The insurance technology company, which employs more than 300 people across the US and Spain, has partnerships with insurance majors like Chubb, CNA, Progressive, Starr, AIG, Zurich, The Hanover, AmTrust, Hiscox, and Liberty Mutual.

Aon expects to wrap up the acquisition in the first quarter of 2020.