Coalition Makes More Cyber Insurance Inroads; Acquires Digital Affect
Cyber insurance provider Coalition has acquired Digital Affect Insurance Company from Munich Re Digital Partners. The result: Coalition gains a property and casualty insurer licensed in all 50 states. Financial terms of the deal were not disclosed.
This is technology M&A deal number 734 that MSSP Alert and sister site ChannelE2E have covered so far in 2022. Financial terms of the deal were not disclosed.
Coalition, based in San Francisco, California, has 477 employees, according to its LinkedIn profile. Coalition is quite familiar with the MSP market; the insurance firm’s forensic team has been known to work with MSPs to help customers mitigate data breaches.
Digital Affect Insurance Company is not profiled on LinkedIn.
Building its Cyber Insurance Brand
Acquiring Digital Affect will allow Coalition to expand its insurance policies through its own admitted insurance carrier, the company said in a prepared statement. Coalition notes that it offers cyber, technology errors and omissions, directors and officers, and other executive risks policies through partnerships with such companies as Allianz, Arch Insurance North America, Ascot Group, Lloyd’s of London, Swiss Re Corporate Solutions, Vantage and Zurich.
Shawn Ram, head of Insurance for Coalition, described the advantages to the acquisition of Digital Affect:
“This strategic move empowers Coalition to expand the reach of our market leading active cyber insurance offering together with other admitted insurance products. The acquisition is a natural next step in our evolution, and will allow us to better serve our broker partners and customers, while continuing to push the boundaries of innovation in cyber insurance, executive risks insurance and beyond.”
A Closer Look at Coalition
Coalition’s active insurance program combines cybersecurity tools, access to 24/7 digital forensics and incident response, and comprehensive insurance coverage to help organizations identify, mitigate and insure digital risk, the company said. Coalition serves more than 160,000 customers with active cyber Insurance, active executive risks insurance, P&C insurance and cybersecurity capabilities.
Active insurance is designed to prevent digital risk before it strikes, combining technology and insurance to help organizations identify, mitigate and respond to digital risks.
Coalition has had a busy 2022. The company raised $250 million at a $5 billion valuation in July. In August, Coalition also appointed its first ever chief financial officer and general counsel ahead of its expansion into the U.K.
Coalition strengthened its cyber insurance program through a new multi-year partnership with global insurer Allianz in July 2022. Allianz assumed a share of all Coalition non-admitted cyber programs in the U.S., and was tapped to lead Coalition’s U.K. cyber program.
Meanwhile, U.S. cyber insurance claims and payouts have continued to increasing since 2018, research from American credit ratings agency Fitch Ratings reported in May 2022.