Insurtech Counterpart’s 8-Web page Pitch Deck Used to Elevate $30 Million

  • Insurtech is a fast-growing section that raked in $15.4 billion of funding globally final yr.
  • Counterpart is a industrial insurtech that makes use of knowledge science to extra precisely measure danger.
  • The startup raised a $30 million Collection B on Tuesday.

There’s been no scarcity of funds flowing into insurance-technology firms over the previous few years. 

Personal-market funding to insurtechs soared to $15.4 billion in 2021, a 90% enhance in comparison with 2020. A number of the most well-known shopper insurtech names — from Oscar (which focuses on medical insurance) to Metromile (which focuses on auto) — launched on the general public markets final yr, solely to fall over time or be acquired as traders questioned the sustainability of their enterprise fashions. 

Within the industrial area, nonetheless, the pinnacle of 1 insurtech firm thinks there may be nonetheless room to develop — particularly for these catering to small companies working in a wholly new, pandemic-defined setting. 

“The larger alternative is in industrial traces,” Tanner Hackett, the CEO of administration legal responsibility insurer Counterpart, instructed Insider.

“All over the place I poke, I am like, ‘Oh my goodness, we’re nonetheless in 1.0, and all the opposite companies I’ve constructed had been on model three.’ Insurance coverage remains to be in 1.0, nonetheless managing from spreadsheets and PDFs,” added Hackett, who additionally beforehand co-founded Button, which focuses on cellular advertising and marketing. 

Based in 2019, Counterpart companions with brokers to supply administrators and officers, employment practices, and


protection for personal firms with lower than 250 staff and $250 million in annual revenues.

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Administrators and officers insurance coverage covers the executives of an organization ought to they be sued because of their administration selections. Employment practices insurance coverage, in the meantime, covers firms ought to they be sued by present, former, or potential workers over employment-related points. Fiduciary insurance coverage covers firms of their function in managing worker profit plans.

In 2020, the marketplace for industrial insurance coverage within the US totaled some $314 billion, in line with the Insurance coverage Info Institute. Counterpart’s opponents embody insurance coverage giants like Chubb, Vacationers, and Liberty Mutual in addition to different tech-oriented gamers like Subsequent Insurance coverage. In keeping with S&P International, in the meantime, direct premiums written worldwide for administrators and officers insurance coverage alone totaled $10.8 billion in 2020. 

On Tuesday, Counterpart introduced it raised a $30 million Collection B spherical led by Vy Capital, with participation from present traders together with Valor Fairness Companions and Felicis Ventures. 

In keeping with Hackett, Counterpart’s underwriters are extra precisely “danger engineers,” a task that underscores the startup’s data-oriented, tech-driven strategy to pricing insurance coverage that has grow to be the norm amongst insurtech companies. 

“Meaning abstracting hundreds of various knowledge factors that we’re gathering about this enterprise, taking these breadcrumbs and structuring them such that we will then construct complicated data-science fashions on prime of those very broad knowledge units,” Hackett stated.

The core engine of the corporate is an algorithm that ingests knowledge to interpret firm dangers and discover the insurance coverage protection that most closely fits the shopper’s wants.

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Hackett declined to reveal a valuation for Counterpart, however stated that the brand new capital will assist develop Counterpart’s staff from 28 staff to roughly 75 by year-end. This February, Hackett added, the startup introduced on Ali Penny, a former head of recruiting applications at Yext, as head of individuals.

See the 8-page pitch deck Counterpart used to boost the Collection B spherical.