Insuretech Startup Counterpart Raises $10M Funding

Counterpart Secures $10 Million in Funding

Counterpart, an insuretech startup, has successfully raised $10 million in a funding round spearheaded by Valor Equity Partners.

Susa Ventures and Felicis Ventures also contributed to this investment.

Focus on Management Liability Insurance

Counterpart concentrates its efforts within the “management liability” insurance sector.

A strategic partnership has also been established with Markel Specialty, the specialized insurance arm of Markel Corporation, to facilitate the distribution of its management liability insurance offerings.

A Growing Insuretech Landscape

While numerous insuretech companies, including Oscar, Lemonade, and Root, have entered the personal insurance arena, fewer have targeted the substantial $300 billion corporate insurance market, according to Counterpart.

Competitive Positioning

Counterpart finds itself in competition with Next Insurance, which has garnered $631 million in funding and also provides small business liability insurance.

The company also competes with established insurance giants such as AIG and Berkshire Hathaway.

Digitizing the Insurance Process

Counterpart’s platform is utilized by wholesale brokers across the United States to streamline insurance coverage for small and medium-sized businesses.

It achieves this by digitizing key processes, including application submission, coverage selection, binding, claims management, and loss prevention.

Counterpart identifies a decline in carrier interest in this market due to escalating claims costs, increased claim severity, and a general lack of digitization.

Statements from Leadership

Tanner Hackett, founder and CEO of Counterpart, stated: “The $1.2 trillion insurance industry is undergoing a significant digital revolution.

We recognized a considerable opportunity within management liability, an essential insurance category where we possess specialized knowledge.”

Jon Shulkin, partner at Valor Equity Partners and a member of Counterpart’s board, commented: “Counterpart’s platform extends beyond the capabilities of a conventional insurer.

It incorporates valuable insights, tools, and services to assist business stakeholders in navigating a particularly challenging operational landscape.”