US-based Reliance Global Group has forged a strategic partnership and invested in digital insurance agency Nsure.

Under the terms of the deal, Reliance has made a direct investment of $1m in Nsure marking the first in the series of planned investments totalling to $20m.

The deal will give Reliance a 35% stake in Nsure, with an option to acquire an additional 5% once the transaction is completed.

As part of the strategic partnership, Nsure.com will provide back-end support for Reliance’s agency business.

Nsure represents over 30 insurance companies and has a recurring revenue model that includes annual commissions on all policies, including renewals.

Nsure’s online platform offers simplified application process, real-time connection, instant accurate coverage recommendations, and In-house insurance buying.

The digital insurer plans to expand its footprint nationwide through its partnership with Reliance.

Reliance Global Group CEO Ezra Beyman said: “We believe this strategic investment and partnership with Nsure.com will be a transformative event for the Company for two key reasons.

“First, we believe our equity investment into Nsure.com has the potential to drive massive value for our shareholders.”

Nsure CEO Wojtek Gudaszewski said: “This planned $20m financing from Reliance will be used to fuel Nsure.com’s nationwide expansion, with a goal to establish a strong presence in markets covering more than 80% of US population by the end of 2021.

“According to FT Partners report, in 2019 total financings within the insurance technology marketplace reached $4.4bn, representing 76% growth over the same period last year.

“Companies like Hippo Insurance, Lemonade and Root have each surpassed $1bn valuations.”