July 1 (Reuters) – Insurance tech startup bolttech said on Thursday it raised $ 180 million in a funding round, led by private investment firm Activant Capital Group, which valued it at more than $ 1 billion.
The New York and Singapore-based company’s online platform acts as an intermediary between insurance companies, enabling them to offer customers products that may not be in their area of specialization.
Insurers spend billions of dollars a year on advertising to attract customers, some of whom may wish that financial products were not part of the supplier portfolio, said Rob Schimek, CEO of the Bolttech Group.
Insurers “just don’t want to say no” to these customers, so they are using bolttech technology to offer additional products, said Schimek, a former senior executive at insurance giant AIG.
Bolttech has 150 insurers in 14 countries and $ 5 billion in insurance premiums was processed through the platform, he said.
Bolttech also allows non-insurer companies to offer insurance products to customers and individuals and small businesses can purchase insurance directly through the platform.
“The genius is that the (insurance) exchange was never really done right and everyone has held onto clients so tightly and wouldn’t sell other people’s insurance and that just start to change, ”said Steve Sarracino, partner of Activating Capital of why he led such a big round of funding.
Schimek said the funds will be used to improve Bolttech’s technology and expand its global footprint.
Reporting by Jane Lanhee Lee; Editing by Himani Sarkar