Converge Insurance Announces $15 Million Series A Funding from Forgepoint Capital

The funding will be used to accelerate expansion of platform’s functionality, expand go-to-market and insurance capacity for the MGA.

(Image source: Converge Insurance homepage.)

Converge Insurance (New York), an MGA that fuses cyber insurance, security and technology to provide small to medium-sized businesses with what it calls clear and confident cyber protection, has announced $15 million in Series A funding from Forgepoint Capital (San Mateo, Calif.). Forgepoint Managing Directors Don Dixon and Andrew McClure have joined Converge’s Board of Directors as part of the financing. Tom Kang has been appointed as CEO of Converge Insurance as part of the financing round, which closed last week.

Tom Kang, CEO, Converge Insurance.

Converge addresses the problem of underinsurance for cyber risk among SMBs—61 percent of which were the target of a cyber attack in 2021. By deploying a proprietary data ecosystem underpinned by expert underwriting, Converge says it provides precise cyber risk solutions that deliver improved outcomes for its customers, starting with SMBs.

“Our mission is to empower policyholders with radically transparent cyber insurance so they can manage technology risks more intelligently,” comments Kang. “We’re thrilled to partner with the team at Forgepoint Capital, who uniquely understand the needs and opportunities of this burgeoning market. This funding will enable us to expand our outreach and grow our bench of in-house experts while accelerating the availability of the Converge platform worldwide.”

Last week, leading global insurer QBE North America announced the launch of a cyber insurance program with Converge acting as program administrator, the company reports.

“Converge is the latest company in our investment strategy to reinvent cyber insurance and risk management,” comments Forgepoint’s Dixon. “We couldn’t be prouder of the seasoned team assembled at Converge and the progress they have achieved in such a short amount of time with their unique cyber underwriting model.”

Forgepoint has backed other prominent brands in the cyber insurance market, including risk analytics company CyberCube Analytics, incident response firm Surefire Cyber, and managed security service provider SolCyber. Converge is the third company incubated at Forgepoint to focus on the cyber insurance market.

Kang, a licensed attorney who was elevated to CEO from his prior role as Chief Insurance Officer at Converge, is an expert in the cyber insurance industry. He has held several senior leadership roles specializing in high exposure cyber product strategies and solutions, consulting, business intelligence and data for global organizations. Prior to Converge, Kang was Head of Cyber, Tech and Media at Allianz Global, Global Cyber Product Leader at Willis Towers Watson, Enterprise Lead for Cyber Liability at The Hartford, and Assistant Vice President, Director of Claims and Services at ACE Group.

Andrew McClure, Director, Forgepoint.

“Converge combines a proprietary data ecosystem, expert underwriting from a world-class team and a powerful platform with a results-driven approach designed to mitigate risk,” comments Forgepoint’s McClure. “What they have been building is truly world-class and will change the game for an industry in dire need of modernization. I am excited to work with Tom Kang to lead the company forward together with this team and for the platform to make its global debut.”

Joining Kang on the Converge team are several other seasoned leaders who bring extensive experience spanning cyber insurance, underwriting and software development to continue to accelerate the organization’s growth plans according to a Converge statement. The company has also added multi-time CEO and experienced company builder Tom Kelly to the Board of Directors. Global Holdings CEO Steve Petrevski is also on the company’s Board of Directors. Converge co-founder and former Forgepoint Entrepreneur-In-Residence Anthony Dagostino will remain an advisor to the company during the transition.

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Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at AnthODonnell@IIReporter.com or (503) 936-2803.

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