(Image source: Accelerant web page.)
Accelerant (Atlanta), an InsurTech dedicated to empowering underwriters with risk exchange and data analytics coupled with long-term capacity commitments, announced that it has raised in excess of $190 million at a $2 billion pre-money valuation led by Eldridge (Greenwich, Conn.), with participation from Deer Park, Marshall Wace, MS&AD Ventures, and others. Existing majority investor Altamont Capital Partners also participated in the round. Accelerant says it will use the capital to continue to rebuild the way that underwriters share and exchange risk to improve outcomes for program managers, primary issuing carriers, and ultimate risk-bearers.
“Aspects of the insurance industry have been broken for a long time,” comments Jeff Radke, CEO and co-founder, Accelerant. “At Accelerant our approach is pretty simple, which is maybe what makes it a little radical: We’re bringing transparency, data, and shared incentives back into the equation, serving MGUs as important partners in the insurance ecosystem, and overall making it easier and more efficient to exchange risk. The approach is clearly resonating and successfully aligning incentives. I’m thrilled by this endorsement of our strategy and to have the opportunity to put this capital to work on behalf of our current and prospective Members in service of the industry at large. We look forward to working with new partners to apply our differentiated approach and technology to lines of insurance beyond SME within which we can have an equally significant impact.”
An Accelerant statement notes that, historically, underwriting teams supporting complex or niche lines of business have lacked the modern solutions needed to facilitate their work, which has hindered their ability to get capacity and to properly understand and exchange risk. Accelerant says it takes a partner-first approach, specializing in serving a carefully selected and managed network of MGUs and program administrators that it refers to as its Members.
SMB Target Market
Accelerant describes its InSightFull data platform as designed to help members better understand risk, benefit from insights, and handle operational and regulatory complexity. Accelerant says it works with its Members to drive profitable growth, focusing on the small and medium-sized businesses that power our global economy and their niche insurance needs.
“The Accelerant team understands the challenges that MGUs and PAs face with conventional carriers, and they’ve built an offering to address those needs,” says Todd Boehly, co-founder and CEO, Eldridge. “With cutting-edge data and analytic capabilities, Accelerant’s platform eliminates bureaucracy to offer an experience that prioritizes velocity and collaboration. We’re excited to support Accelerant as they enter their next phase of growth and create value throughout the insurance ecosystem with their member-centric, collaborative approach.”
Winning Strategy of Data-Driven Collaboration
“Accelerant’s unique focus on data-driven collaboration has proven to be a winning strategy for its Member MGUs. This success is thanks in part to the depth and breadth of the team’s expertise, combining career knowledge of the entire insurance value chain with invaluable data science experience,” comments Sam Gaynor, Managing Director, Altamont.
Keoni Schwartz, Managing Director at Altamont comments, “Accelerant is at the forefront of innovating beyond the legacy system, and we’re excited to continue to support Accelerant with an additional investment in this round, as we believe the momentum is only increasing.”
Financial Technology Partners (FT Partners, San Francisco) served as exclusive advisor to Accelerant and its Board of Directors and Sidley Austin LLP (Chicago) acted as legal counsel.