Insurance brokerage AoN PLC recently announced its acquisition of CoverWallet, a startup that works with small and midsize businesses, according to The Wall Street Journal.
CoverWallet is an online insurance company that provides small and midsize companies with the ability to get price quotes and buy policies for liability, workers’ compensation, and additional types of insurance. CoverWallet streamlines the insurance quote process for small and midsize businesses by eliminating the need for an agent.
The financial details of the deal were not released when the companies announced the acquisition on Wednesday.
The small business insurance market in the U.S. is valued around $100 billion in premiums. Insurance companies have been eager to expand their market share of the small business insurance market, which explains AoN’s move in purchasing CoverWallet.
“The way the insurance market works today is very manual,” Inaki Berenguer, CoverWallet’s chief executive, said. “We are leveraging data science and technology to make this process very simple.”
AoN believes that startups prefer to handle their insurance policy online. Most of CoverWallet’s customers have less than 150 employees. Unfortunately, online sales of small business insurance sales is only 5 percent of the total market.
AoN purchased startup CoverWallet in its attempt to gain more exposure to the $100 billion U.S. small business insurance market.