Insurance Quantified acquires Groundspeed Analytics
Insurance Quantified, a property and casualty underwriting technology provider, has acquired Groundspeed Analytics, a data solutions provider for the commercial property and casualty industry.
Groundspeed Analytics was seeking to raise venture capital funding when Insurance Quantified made the initial contact.
“I’d always admired the company, and I found out which firm was helping them raise money and I contacted them,” said Brian Modesitt, CEO of Insurance Quantified. “There really is no market for raising venture capital right now. I think you’ll see us continue to acquire companies, and we’re open for business [to] continue to do that.”
Even as insurtech funding decreased in 2022 from an exceptional year in 2021 ($7.2 billion through September 2022 vs. $17.3 billion in 2021) according to a report by Bain & Company, insurtech acquisitions have continued to accelerate (90 deals through September 2022 vs. 58 deals in 2021), with strategic buyers looking for advanced capabilities in insurtech startups seeking funding.
Insurance Quantified also anticipates that the market of underwriting technology will expand rapidly in the coming years.
“Companies, insurance carriers and MGAs are in the early stages, in my opinion, of integrating technology into underwriting,” Modesitt said.
Modesitt also stated that the acquisition is “compatible culturally with the way that we work and the kind of people that we have.”
“There was a very strong client-driven connection… between the two companies,” Modesitt said.
Eric Kobe, CEO of Groundspeed Analytics, will be joining the Insurance Quantified leadership team as part of the deal. Insurance Quantified will also open an in-person office in Ann Arbor, Michigan, where Groundspeed Analytics was founded. The acquisition was completed on June 20. The terms of the deal were not disclosed by Insurance Quantified.
“By combining forces, we are able to accelerate delivery of our product roadmap,” said Kobe in a press release.
Jeff Mason, founder and Executive Chairperson of Groundspeed Analytics, commented, “I am convinced this combination will add significant value for Groundspeed’s clients. I am impressed with Insurance Quantified’s vision and capabilities, and I am certain Groundspeed’s clients will be too.”
