Aon plc has entered into a definitive agreement to acquire CoverWallet, the digital insurance platform for small and medium-sized businesses.
In a statement, Aon said that the acquisition provides Aon with additional access to the fast-growing, $200+ billion premium digital insurance market for small and medium-sized businesses, as well as the opportunity to leverage CoverWallet's platform to develop and scale innovative digital client experiences that support the firm's growth strategy.
"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," said Greg Case, the chief executive officer of Aon. "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."
After the closing, Aon said, CoverWallet will join the portfolio of Aon's New Ventures Group, which functions as a growth-stage capability focused on delivering new sources of value to clients that expand Aon's addressable market. As part of the New Ventures Group portfolio, CoverWallet will apply its data and analytics capabilities, technology, and operational expertise to the broader Aon digital client experience, while also working with leadership across Aon's geographies and global solution lines to accelerate the growth of CoverWallet's core business.
"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," said Inaki Berenguer, the chief executive officer and co-founder of CoverWallet. "Aon's shared vision means we can continue pushing the boundaries of innovation into new markets and new products at a greater scale."
Founded in 2015 by Mr. Berenguer and Rashmi Melgiri, CoverWallet has more than 300 employees across engineering, digital marketing, data science, business intelligence, design, and operations, with offices in New York City, Rochester, New York, and Spain. CoverWallet also maintains strategic partnerships with insurance companies including Chubb, CNA, Progressive, Starr, AIG, Zurich, The Hanover, Hiscox, Liberty Mutual, and AmTrust, among others.
Aon said that it expected the transaction to close during the first quarter of 2020, after which the CoverWallet organization will go to market as CoverWallet, an Aon company.
Learn more: Aon plc.
Steven A. Meyerowitz
Steven A. Meyerowitz, a Harvard Law School graduate, is the founder and president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. He may be contacted at [email protected].