Why Definity has partnered with this well-known digital broker

Canadian digital insurance broker and MGA Apollo entered a strategic partnership with Definity Financial Corp. It includes a distribution relationship between Apollo and Definity’s affiliate, Definity Insurance Company.

Definity has agreed to complete an initial minority equity investment in the insurtech, and Apollo simultaneously announced a Series B financing with Definity Financial Corporation.

“This transaction provides a unique opportunity for us to accelerate our digital ambitions in commercial insurance by partnering with an entrepreneurial management team focused on growth,” says Fabian Richenberger, executive vice president of commercial insurance at Definity. “Apollo’s scalable technology platform, combined with our proven digital channel experience and strong underwriting capabilities, will allow Apollo to enhance its client experience by offering a broader range of commercial coverages.”

Apollo allows broker partners and customers to buy insurance online through its proprietary platform. The platform has a user base of more than 6,000 independent Canadian brokers and over 150 group partners, and can be accessed in all Canadian provinces except Quebec.

Apollo, which specializes in commercial insurance, also counts Lloyd’s of London, Trisura Guarantee and Liberty Mutual among its insurance product suppliers.

During a fireside chat last month, BMO Capital Markets equity analyst Tom MacKinnon remarked to Definity president and CEO Rowan Saunders that the insurer’s been vocal about plans to grow through acquisition.

Saunders replied: “It’s not really a surprise that Definity is looking to build its market share. And when you think about our ability to get to the Top 5 and you do the math, it’s clear we will need more than just organic growth to get there.”

Definity has an established digital insurance expertise in commercial lines, including broker digital platform Vyne Commercial. Definity also has digital insurance experience expertise through Sonnet, an online personal insurance offering.

Feature image by iStock.com/ArtemisDiana