Canadian property and casualty insurance firm Definity Financial Corporation has struck an alliance with digital insurance broker and MGA Apollo Insurance.
The partnership includes an initial undisclosed minority equity investment in Apollo Insurance by Definity and a distribution agreement.
The investment in Apollo awaits regulatory nod and is expected to complete in the second quarter of 2022. It will be funded using existing cash reserves.
Definity, which already has digital insurance expertise in commercial lines, seeks to expand its footprint through the partnership with Apollo.
Definity operates a digital broker platform Vyne and offers a fully online personal insurance offering called Sonnet.
Launched in 2019, Apollo’s broker partners and customers can buy cover via its proprietary platform.
Apollo utilises data and intelligent algorithms to quote, collect a payment, and issue policies.
Definity executive vice-president of commercial insurance Fabian Richenberger said: “Definity is one of Canada’s leading digital insurance providers, and this partnership with APOLLO will allow us to extend the opportunities for a simpler insurance experience for both brokers and their customers.
“We believe that the scalable platform that APOLLO provides, combined with our proven track record in digital innovation and strong underwriting, will help strengthen our commercial distribution capabilities.”
Apollo CEO & co-founder Jeff McCann said: “Our partnership with Definity provides us with resources and opportunities to expand our footprint in the small to mid-size business market.
“Definity and APOLLO share a deep commitment to using technology and software to deliver an effortless insurance experience to customers and our retail broker partners.”