State Automobile Mutual Insurance innovation department State Auto Labs has launched a $25m venture fund to invest into InsurTech and FinTech companies.
The vehicle is in collaboration with Rev 1 Ventures and will focus on companies with technology that connects, collects and communicates with people, vehicles and homes. The firm will also look to invest in companies with data-driven innovations improving analytics and decision-making, and distribution technology that help improve customer service and add value to policyholders.
A final area of interest for investments are products and operational solutions anticipating changing needs of insurance and tapping into new markets like the sharing economy or insurance on demand.
Ohio-headquartered State Automobile Mutual Insurance provides policies for a range of sectors including auto, property, businesses and workers, among others. The company has assets reaching up to $4bn and write almost $2bn in premium across the 50 states, according to the company.
State Auto Labs managing director Kim Garland said, “The insurance industry is in the midst of an enormous transformation and is poised for a bigger disruption over the next five years than its undergone over the past 50 years. This next progression will come from both inside and outside of the insurance industry. The insurance companies that will be successful in the future are those that leverage innovations from a variety of sources.p>
The first quarter of the year has seen $178.5m in funding across a total of 53 deals, compared to the last quarter of 2016 which raised $220.8m in 47 deals.
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