CoverHound acquired by insurance broker Brown & Brown

Digital insurance marketplace CoverHound was acquired by Brown & Brown for undisclosed terms, the companies announced on Monday, November 9.

Why should we care?
Within fintech and financial services, marketplaces are efficient referral channels and important keys to customer acquisition. For example, late October, consumer financial product marketplace NerdWallet acquired small business lending market Fundera to support its expansion efforts. CoverHound, a ten-year-old San Francisco-based company, was designed to refer customers to auto, home, life, and renters’ insurance products. It’s so far raised $111 million, according to Crunchbase. The acquisition will help Brown & Brown, a company that offers risk management solutions to individuals and businesses, to gain access to the digital insurance market for both individuals and small businesses, in addition to capabilities that modernize the insurance purchasing experience. The transaction includes CoverHound, along with its subsidiary CyberPolicy, a cyber insurance marketplace. Brown & Brown is one of the largest insurance brokers in the U.S., with reported 2019 revenues of $2.4B.