Digital transformation is a crucial aspect for the growth and success of insurance companies in today's technology-driven world. However, many insurance agents, brokers, MGAs, and carriers have been struggling to keep up with the latest advancements due to various obstacles.
The insurance industry has been slow to evolve due to legacy systems that are difficult and expensive to scale, siloed data, and limited access to real-time management information. As a result, companies have been facing significant challenges in managing their operations effectively and providing top-notch services to their customers.
Combating the challenges
In an attempt to combat these challenges, Israeli insurance technology company Novidea has developed a data-driven cloud platform that optimizes the insurance policy and distribution lifecycle. Earlier this week, the company secured $50 million in a Series C funding round led by Battery Ventures, with participation from Cross Creek, Israel Growth Partners, KT Squared, and JAL Ventures. The latest round brings the total amount raised by Novidea to $90 million.
The company plans to utilize the newly-gained funds to expand its market share and continue its journey to becoming an industry leader. The investment will be used to further develop its cloud-based, data-driven insurance platform, strengthen its customer success infrastructure and expand teams and offices across all target markets in the US, UK, EMEA and APAC.
“Novidea has experienced unprecedented growth, driven by the demand in global markets to modernize the insurance distribution lifecycle and provide a better digital experience. We are thrilled to welcome Battery Ventures and Cross Creek as our newest partners in this round of funding, along with our existing investors,” said Novidea's CEO, Roi Agababa. “Through this transaction, Novidea will have the ability to expand our product suite, add further innovation to our platform, and deliver superior customer experience.”
Shiran Shalev, partner at Battery Ventures and a new member of Novidea’s board of directors stated: “While businesses globally adjust to dealing with a pronounced increase in risk—driven by geopolitical, economic, and other events—the insurance industry has generally been underserved by technology relative to other sectors. Novidea has built a modern, comprehensive software suite which currently powers some of the world’s largest and most complex insurance groups, and we are excited to partner with them for their next phase of growth.”