Global insurance provider expands US presence with acquisition
Motor and fleet
By Ryan Smith
Global on-demand insurance provider INSHUR has announced that it has acquired American Business Insurance Services (ABI).
The acquisition will expand and scale INSHUR’s US operations, the company said. INSHUR is an embedded insurance platform serving the on-demand driver economy in the US, UK and Netherlands.
INSHUR’s strategy will accelerate its growth in 2023 by more than 200% through the acquisition of ABI and the execution of its embedded partnerships, the company said.
Founded in 1983, ABI is one of the largest producers of commercial vehicle insurance in the United States, insuring more than 50,000 vehicles nationwide. The acquisition will allow INSHUR to serve on-demand drivers and fleets in all 50 states.
The acquisition will also strengthen INSHUR’s product portfolio and allow it to further promote safe driving practices through its underwriting capabilities, the company said. The deal also gives INSHUR greater access to claims data, offering more efficient product development for fleet managers and on-demand drivers.
“The on-demand driver economy is growing exponentially around the world, so the ability to provide access to competitive insurance policies that meet drivers’ needs is becoming imperative to providing the best possible user experience,” said Dan Bratspies, co-founder and CEO of INSUR.
“Since 2016, INSHUR has successfully insured and protected the professional class of drivers with our seamless integration of technology and insurance expertise to match the expertise of our partner platforms,” he said. “Now, with the acquisition of ABI, we will be able to bring our world-class commercial insurance products to hard-working drivers and fleet managers across the US, supporting them with policies that fit drivers’ lifestyles and work hours.”
“ABI has a hard-earned and excellent reputation for delivering the best products to America’s commercial automotive industry, and now the addition of INSHUR’s technology, partnerships and expertise will help create a true best-in-class offering.” Together, INSHUR and ABI will empower a new generation of entrepreneurial drivers to make a good living for themselves and their families while staying safe and secure.”
“For four decades, ABI has worked tirelessly to support the engines that keep America’s economy moving, from single owner-operators to large fleet businesses,” said Dave Haley, ABI CEO. “Our legacy is that we have always been at the forefront of technological innovation for drivers, which has resulted in thousands of satisfied customers through the products and services we have provided over the years.
“Now it’s the turn of the insurance industry to transform itself through new technologies and practices, and we know that INSHUR is the company that will lead the way. INSHUR’s unrivaled technology and partnerships will revolutionize the way commercial auto insurance is underwritten, managed and delivered, and I am very excited to join forces with the entire INSHUR team on our journey together.”
INSHR also recently completed a $26 million capital raise. The fundraising was backed by existing investors including JVP, Munich Re Ventures, Viola Fintech and MTech Capital, and is a race to INSHUR’s Series B fundraising in 2021.
“In a platform economy from micro to small businesses, insurance is simply not meeting the needs of its insured,” said Erel Marfalit, chairman and founder of JVP. “That’s why we’re proud to be invested in INSHUR, which is empowering an entire generation within the digital workforce to go to work with confidence through its dynamic insurance platform in the US and Europe.”
“Whether you’re a courier delivering packages to Amazon, or you operate a rideshare business using a platform like Uber, INSHUR is on track to become the category leader in on-demand commercial insurance. INSHUR’s ability to do real-time dynamic AI rating and pricing and understand each driver on their own merits can make a big difference in being able to provide them with the right kind of insurance solutions.”
“With this latest round of funding, we are excited to see INSHUR pursue expansion into the broader US market while maintaining a focus on strong profitability and low loss ratios,” said Oshri Kaplan, managing director at Munich Re. “By expanding its embedded insurance product with its partners, INSHUR is well positioned to bring its innovative insurance solutions to even more customers in the North American and European markets.
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