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Coalition’s 2022 Milestones

Blog: Coalition's 2022 Milestones

We had an incredible year protecting the unprotected from evolving digital risks. Through the introduction of Active Insurance, we shifted how we all think about digital risks and their changing nature. 

Changing how we think about risk allows us to protect our policyholders as they do business in an uncertain cyber landscape. But it's not just cyber — we applied this approach to our new Executive Risk products as well.

Best of all: we’re proud to share that Active Insurance works. Our policyholders experience 50% fewer claims than the overall market, as seen in our 2022 Claims Report.

This year was the most exciting year in our five-year history. As we look ahead to 2023, we wanted to take a moment to reflect on some of our highlights from this year.

Coalition’s 6 biggest accomplishments in 2022

1. Launched Active Insurance to combat evolving digital risks

As more and more organizations rely on technology to conduct business, they’re increasingly susceptible to cyber attacks. Insurance has traditionally looked to the past to determine future risks. However, it’s not enough for today’s constantly-evolving digital risks.

Five years ago, we took a fundamentally new approach to insuring cyber risks. That unique approach is now known as Active Insurance. It assesses an organization’s risk when they apply for insurance, monitors and alerts them throughout a policy if a vulnerability surfaces, and it’s there for them to handle an incident quickly should one occur.

As of this year, we are protecting 160,000+ policyholders with Active Insurance.

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2. Expanded our product offering to include D&O and EPL

We kicked off 2022 by offering two new Executive Risks products: Directors & Officers (D&O) and Employment Practices Liability (EPL). Our broker partners benefit from near-real-time data that drastically streamlines the process —from quoting to binding to servicing renewals.

The power of Active Insurance is brought to each of these new coverages. We provide active monitoring of our client's risk exposures and ongoing support to keep a risk from becoming a claim throughout a policy.

3. Capacity providers continued to support our cyber programs

We've been very fortunate to secure additional capacity for our cyber programs throughout the year: 

  • Ascot Group backed our US primary surplus lines cyber program in early April through Ascot Specialty Insurance Company. It's a multi-year partnership that provides us with long-term capacity for our cyber programs.

  • Vantage backed our US excess cyber program in late April through its Vantage Risk Specialty Insurance Company.

  • We added new capacity from Allianz, an AM Best A+ rated global insurer, to expand capacity for our US and UK cyber programs in June. This is also a multi-year partnership that provides us with long-term capacity for our cyber programs.

  • We also formed Ferian Re, an independent Bermuda-based Class 3B reinsurer that provides capacity across Coalition's cyber programs. Ferian Re was capitalized with ~$300 million from an investor group led by funds managed by BDT Capital Partners, LLC, an affiliate of BDT & Company, LLC.

4. Additional support for our mission from investors

In June, we received a $250 million Series F investment from Allianz X, Valor Equity Partners, Kinetic Partners, and existing investors. It validated our technology-first approach to helping organizations manage digital risk and positioned us for the next chapter of our growth.

Additionally, this funding round increased our valuation to $5 billion.

5. Coalition policyholders experienced 50% fewer claims

We publish claims data and trends we’ve seen among our policyholders twice a year to keep our brokers up-to-date on the prominent attack vectors, targeted industries, average ransom demands, and more.

In 2022, we released reports in March and September. Our findings in both reports show that small businesses (under $25M in revenue) are increasingly targets for opportunistic threat actors, with the average cost of a claim rising to $139,000 by the second half of the year.

Notably, our Active Insurance approach is effective in reducing claims for our policyholders, who experienced 50% fewer claims than the overall market. 

6. Expanded cyber coverage to the UK

In September, we began trading cyber insurance in the United Kingdom! It was our first expansion outside North America, and we’ve already seen great success binding coverage with many small to midsize businesses in the first few months of trading. 

A glimpse into 2023

Despite continued uncertainty in the cyber landscape and the adaptable nature of threat actors, we're looking forward to helping even more small and midsize businesses manage their risks. 

Next year, we’ll launch two more Executive Risks coverages: Crime and Fiduciary. We’ll also bring significant updates to Coalition Control, improving the experience for our policyholders. In addition, we'll have enhanced coverages in cyber, further international expansion, and raise our revenue threshold beyond $1B. It’ll be an exciting year!

Thanks to our broker partners, investors, capacity providers, policyholders, and employees for an amazing year. Cheers to 2023!