To our extended coalition of customers, partners, and loved ones:
Today I’m excited to share another major milestone in pursuit of our vision to provide security for all. In June we received a $250 million investment from Allianz X, Valor Equity Partners, Kinetic Partners, and existing investors. This new investment is a validation of our technology-first approach to helping organizations manage digital risk, and positions us for the next chapter of our growth.
But before we write this new chapter, I want to share a bit about how we got here.
While mechanisms to transfer risk have been around for thousands of years, insurance as we now know it was originally created to manage the risk of ships at sea almost 400 years ago. Ship owners and merchants gathered at Lloyd’s coffee house in London, England in the late 17th century to discuss shipping news, and insurance emerged as a tool to help merchants pool their risk.
The rise of insurance can be traced to the rise of commerce as business owners sought to protect their organizations from unforeseen risks. Insurance is now critical to the functioning of the modern economy, and it has since grown to be a massive global industry with insurance companies accounting for over one in ten companies in the Fortune 500.
Due to the sheer scale of the industry, insurance has been slow to evolve. Starting an insurance company requires a large amount of capital, and data to build an underwriting advantage. There’s an incredible amount of regulatory complexity to run an insurance company in one US state, let alone all 50 states and across multiple countries. All of the insurance giants in the Fortune 500 were started before World War II despite the fact that the risks modern businesses face, and the data available to help underwrite and mitigate risk, have changed dramatically.
Many consumers and businesses, unfortunately, have negative associations with traditional insurance. It can be expensive to purchase and provides little to no value until after something bad happens. The recovery process after an incident can be slow and cumbersome. The insurance industry has vast amounts of data on risk, yet so little of that data is translated into action.
When we founded Coalition we shared our secret master plan to build a new kind of insurance company designed to protect organizations from fast-moving digital risk. We call this model Active Insurance, and it combines active underwriting, monitoring, and response to digital risk. With five years of experience behind us, we know that our approach works. Data from our 2022 Cyber Claims Report shows that Coalition policyholders experienced 70% fewer claims than the national average, all while achieving market-leading underwriting results.
This milestone wouldn’t be possible without our customers and partners (including insurance brokers and (re)insurers) who have supported us along the way. Thank you for your faith in us over the past five years. We partner with thousands of brokers to protect more than 160,000 small and midsize businesses in North America, and soon the UK.
Another very special thanks goes out to the global teammates I have the pleasure to work with each day, and who work relentlessly to build towards a better future. It truly takes a coalition to build Coalition.
We remain deeply committed to our vision to provide security for all, which is more important than ever in the face of economic and geopolitical uncertainty. We’re only 1% of the way there, but we’re one step closer to creating a digital economy where everyone can thrive.
Joshua Motta, Founder and CEO, Coalition Inc.