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Cowbell Cyber (Pleasanton, Calif.), a provider of cyber insurance for small and medium-sized enterprises (SMEs), announced that it has secured $100 million in capital led by Anthemis Group (London) with participation from Permira Funds, PruVen Capital, NYCA Partners, Viola Fintech and all existing investors. This latest financing will increase investment in data science, underwriting, risk engineering and claims management; expand go-to-market channels including digital distribution; and support Cowbell Re, the company’s reinsurance captive, according to a Cowbell Cyber statement.
“Since its 2019 inception, Cowbell has delivered on its promise to meet the needs of our policyholders by aligning cyber coverage to their specific exposures, continuously monitoring their rapidly changing threat landscape, and offering access to unique risk mitigation resources,” comments Jack Kudale, founder and CEO, Cowbell Cyber. “As we position ourselves to lead the ‘second wave’ of cyber insurance growth, this funding will accelerate our pioneering approach to cyber risk underwriting and drive growth and profitability while closing insurability gaps.”
A Gallagher Re report predicts that the cyber reinsurance market will double in size every three years, becoming comparable in size to property catastrophe or casualty by 2040. Cowbell Cyber estimates that cyber insurance in-force premiums in the U.S. will total $100 billion by 2030. One in five U.S. SME remains uninsured or underinsured for cyber risk, which Cowbell Cyber says constitutes an opportunity to lead this underserved market segment.
As part of the funding, Matthew Jones, Managing Director, Anthemis Group will join the Board of Directors and Victoria Cheng, Partner at PruVen Capital will join as a Board observer. The company also appointed Michael J. Christenson, Partner at CDX Advisors, as an independent board member.
“With its unique approach to cyber risk underwriting and continued collaboration with cybersecurity suppliers, Cowbell Cyber has positioned itself as the leader in the cyber insurance space for SMEs,” comments Jones. “The company has accomplished stellar results to date and we are thrilled to be a part of their next chapter. We look forward to the innovation they’ll continue to bring to the cyber insurance market.”\
Cowbell reports that it has developed the largest cyber insurance distribution network in the U.S. with more than 14,000 producers and has grown its monitored risk pool to more than 23 million businesses, amounting to 70 percent of the SME U.S. market. During 2021, Cowbell says its gross written premium grew 40 times while loss experience has remained among the lowest in the industry driven by continued focus on underwriting discipline. The company says it will triple its policyholder base in 2022, solidifying its market position as the leading provider of cyber insurance to SMEs.