Rob Schimek, group CEO of bolttech
Singapore-based insurtech startup Bolttech, backed by Hong Kong billionaire Richard Li, announced Wednesday it raised $196 million in a Series B funding round at a valuation of $1.6 billion.
Japanese insurer Tokio Marine led the round, which included participation from the venture arm of New York-based insurance giant MetLife and Malaysian sovereign wealth fund Khazanah Nasional. The fresh capital brings Bolttech’s total funding to over $406 million.
Other backers of Bolttech include Li’s investment firm Pacific Century Group, Singaporean government investment vehicle EDBI, Spanish VC fund Mundi Ventures and San Francisco-based VC firm Activant Capital. Li serves as chairman of Bolttech and his Pacific Century Group also controls life insurance company FWD, where Bolttech’s group CEO, Rob Schimek, was managing director and group chief commercial officer.
Bolttech operates as a digital insurance exchange, connecting businesses with insurers and other distributors. Businesses can purchase insurance coverage for their customers on everything from health to gadgets. Its clients include Korean tech giant Samsung, which uses Bolttech to offer device protection insurance at points of sale. The startup claims its online platform supports over 6,000 insurance products from 230 insurers and 700 distribution partners, with $55 billion worth of annualized premiums.
The funds raised will go towards fueling investments in proprietary technology, digital capabilities for business partners and end consumers, and grow its headcount. It also plans to invest in acquisitions for its international expansion. To date, Bolttech spans over 30 markets globally.
Tech adoption in the South and Southeast Asian insurance industries has accelerated following the pandemic, according to a March report from S&P Global Ratings, as factors such as improved risk awareness and financial literacy have fuelled demand for insurance. However, this adoption remains a “slow burn,” as traditional distribution models that emphasize in-person interaction will remain key for at least the next decade, the report added.
Insurtech startups have gained increasing visibility. Last year, two rising insurtech startups were featured on the Forbes Asia 100 to Watch list: Shanghai-based G-hcare, which works with Chinese insurers including China Life, China Taiping and Ping An, and Hong Kong-based OneDegree, which raised $28 million in an August 2021 funding round.