Insurance investment group partners with online brokerage

Insurance investment group Southampton Financial has partnered with the driving force behind brokerage Cheep Insurance, a deal designed to provide the brokerage with cutting-edge digital technologies. 

Southampton Financial announced its equity partnership with WebBroker Canada Inc. on Tuesday. The deal adds to the firm’s other transactions involving Canadian P&C operations that offer digital car and home insurance. 

“Through its equity partnership with Southampton Financial, Cheep Insurance is poised to revolutionize its operations using innovative applications offered by Southampton’s digital platform,” the firm says in a press release. “This strategic alliance opens the door for expanded operations into Ontario, Alberta, and British Columbia, and signifies a pivotal moment in enhancing the customer experience while fostering employee satisfaction and growth opportunities.” 

Dartmouth, N.S.-based Cheep Insurance is known for its unique value proposition in the Atlantic Canada market, Southampton says. The brokerage specializes in car, home, and tenant insurance, emphasizing specialty segments.  

It also offers high-risk car insurance. “Cheep Insurance is committed to accessibility — ensuring that all individuals, regardless of their driving record, credit score, or financial history, can secure personalized insurance and flexible payment solutions,” Southampton says. 

Cheep Insurance president Steve Earle says the partnership stands apart “in a landscape crowded with options for smaller brokers looking to consolidate or integrate with larger entities. 

“Unlike traditional mergers or acquisitions, this collaboration preserves Cheep Insurance’s distinct brand identity, core values, and individual persona,” Earle says. “Cheep Insurance gains access to cutting-edge technologies through this alliance, facilitating the transition from outdated legacy systems commonly found in traditional broker distributions.” 

For its part, Southampton says it’s committed to providing the best possible insurance solutions for all consumers, regardless of their accident history, credit rating or geographic location. Cheep Insurance’s digital platform, which provides insurance for consumers who may not be able to obtain coverage from traditional markets, fills an important gap for the firm, Southampton president and CEO Shahzad Hafeez says. 

Founded in 2023, Toronto-based Southampton focuses on the Canadian P&C distribution space. It provides strategic guidance and oversight, market expansion, access to capital, back-end support services, and a leading-edge insurance technology platform to its portfolio companies. 

In December 2023, Southampton acquired Waterloo, Ont.-based digital insurance brokerage aha insurance. The brokerage serves customers in Ontario, Alberta and British Columbia, offering clients the ability to quote, purchase and manage car and home insurance policies entirely online. 

In May of this year, Southampton completed its acquisition of Onlia Insurance, another digital insurance company. “The strategic move marks a significant step forward in [Southampton’s] commitment to build a major Canadian integrated online insurance platform,” the firm said at the time. 

Headquartered in Toronto, Onlia is a digital insurance intermediary whose integrated digital platform enables the purchase and management of car and home insurance policies entirely online. Its policies are underwritten by Verassure Insurance Company, part of the Achmea and Fairfax Financial group of insurance companies. 

Southampton’s platform companies also include Alteri Insurance, a full-service brokerage that serves customers in B.C. and Alberta. 

 

Feature image by iStock.com/amgun