Walnut Insurance, a technology company that provides infrastructure for embedded insurance, has raised $4m in a seed funding round.
The round was led by ATB Financial and NAventures, National Bank of Canada’s corporate venture capital arm.
Other investors included Harvest Venture Partners, Highline Beta, and N49P.
Founded in 2020, Walnut is a Canadian and US InsurTech that set out to build technology infrastructure to power embedded insurance for retailers, financial services, and consumer platforms.
Walnut’s platform aims to make insurance simple and convenient, creating greater accessibility for underserved audiences across life, home, renters, auto, and embedded product lines.
The company said it has “broken down barriers” that historically have prevented businesses from being able to build an insurance offering into their product.
Walnut recently partnered with Neo Financial, a Canadian FinTech, to help the company tap into the over $160bn Canadian insurance market.
Derek Szeto, Co-founder and CEO of Walnut Insurance, said, “Our seed raise is a testament to the continuing revolution inside the insurance industry.
“We are empowering partners to be able to offer innovative insurance products to millions of customers without the need for years of heavy investment or diversion of significant resources from other ongoing priorities. Embedded insurance is predicted to be a $3trn dollar market and Walnut is well positioned to be a leader in this industry.”
James Povitz, Principal at NAventures, added, “The insurance industry is ready for disruption and Walnut has built a powerful platform that will close the coverage gaps and create meaningful value for millions of people.
“The partnerships and distribution channels Walnut has been able to acquire at this stage of their business is impressive and speaks to the need that Walnut’s fintech infrastructure is solving for partners and clients.”
Earlier this year, InsurTech Qover launched an embedded insurance orchestration technology, designed to help companies add any insurance programme to an existing programme.
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