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Bold Penguin Inc., a Columbus, Ohio-based online insurance exchange, said Tuesday it has acquired analytics and software company RiskGenius.
Bold Penguin acquired Overland Park, Kansas-based RiskGenius from ClaimKit LLC, also based in Overland Park. Terms of the transaction were not disclosed.
RiskGenius provides software and analytics for what it calls the “technology-assisted review of policies.”
“Their policy-level data approach helps our exchange grow” and will have a “significant” effect on quoting, Ilya Bodner, founder and CEO of Bold Penguin, said in a statement.
Bold Penguin earlier this year added commercial auto coverage to its platform.
Bold Penguin was founded in 2016, and RiskGenius was launched in 2015, the statement said.
More InsurTech M&A to come?
Industry observers have said that InsurTechs are reaching a point where they will increasingly consider some sort of M&A opportunity. A recent Deloitte report, for example, concluded that carriers will more eagerly target InsurTechs for acquisition and partnerships in the months ahead, as carriers try to respond quickly to pandemic-driven digital demands. That uncertainty, in turn, is making InsurTechs more flexible about being acquired, or quicker to pursue mergers or acquisitions of other InsurTechs. Other industry insiders have pointed out that the trend was already in play—that carrier strategic partnerships with InsurTechs have been leading or will point organically to M&A overtures, though the pandemic has accelerated that process.
Cheatham himself said he expects other InsurTechs to acquire or merge with each other in the months ahead, as the focus among startups shifts toward providing multiple offerings rather than a single solution.
“Insurance is a very complex process. InsurTechs generally have to choose one problem to solve within that complexity. As a result, InsurTechs will find it beneficial to join forces and combine multiple solutions into one offering,” Cheatham said. “This is what the Bold Penguin-RiskGenius acquisition is all about. We are just ahead of the curve.”
