Headquartered in Hong Kong, Coherent assists insurance companies in their digital transformation efforts. Recognizing the heightened importance of their offerings amidst the COVID-19 pandemic, the company has announced a successful funding round of $14 million. This Series A investment, spearheaded by Cathay Innovation and including Franklin Templeton, will enable Coherent to expand its customer network throughout Asia, particularly supporting insurers seeking to integrate enhanced digital capabilities into their standard sales procedures due to the effects of the pandemic.

Established in 2018, Coherent’s core offering, known as Product Factory, empowers insurance companies to modernize their internal processes. This is achieved by simply uploading existing Excel-based pricing models, eliminating the need for extensive coding or complete overhauls of their existing IT systems.

The company further provides a suite of three distinct solutions designed to enhance customer interactions. Coherent Connect functions as a platform for managing social media marketing initiatives; Coherent Explainer is a sales aid designed to simplify the understanding of insurance quotes; and Coherent Flow facilitates remote policy sales through features such as video conferencing and digital signature capabilities.

The value of Coherent’s remote sales tools is particularly evident in the current climate. However, the challenges posed by outdated legacy systems have long been a concern for insurance providers, hindering operational efficiency and sales velocity while simultaneously driving up premium costs. Other Asian insurtech companies that have recently secured funding to broaden insurance access include PasarPolis from Indonesia, which focuses on reaching previously uninsured individuals, and Igloo from Singapore, a provider of digitally-focused insurance products.

According to John Brisco, CEO of Coherent, the startup collaborated with over 30 insurance companies across 10 international markets throughout 2020.

Although global premiums experienced an initial decline, projections from Swiss Re indicate a recovery for the insurance sector by the following year, driven largely by growth in the Chinese market.

Coherent’s strategic focus will be directed towards China and other developing markets within Asia. The company, currently employing approximately 120 individuals, intends to bolster its teams of technical and actuarial professionals in Hong Kong, Singapore, Shanghai, and Manila, while also establishing new teams in Japan, the United States, and Thailand.