Cowbell – a leading provider of cyber insurance for small- and medium-sized enterprises (SMEs) – recently announced significant momentum and new financing on the heels of its top-grossing quarter and amid continued corporate growth. And Cowbell’s new financing builds on its $148 million raised to-date.
The company announced a new investment led by Prosperity7 Ventures, with participation from other new and existing investors – highlighting its industry leadership, positive investor traction and dedication to providing best-in-class cyber insurance for the SME market. Plus, the company continued to grow its new customer base in 2023 by 49% year-over-year. Cowbell’s profitable growth path is tracking positively with a 43% ultimate loss ratio for 2022.
Cowbell has also been widening its geographic footprint, recently launching operations in the UK market with Prime One for UK SMEs. And Cowbell’s vertically integrated technology platform, AI-based approach, and continuously monitored risk pool (now comprising 38 million US and UK businesses) remain key differentiators.
The need for SMEs is augmenting their cybersecurity with a robust cyber insurance policy has never been greater as more and more threat actors are targeting this market. And since being founded Cowbell 365 (Cowbell’s dedicated risk engineering and claims management service) has prevented extortion payments over 74% of the time and when a ransom must be paid, it’s reduced to an average of 26% of the initial demand.
Cowbell’s momentum has demonstrated its ongoing commitment to closing the insurability gap, and dedication to evolving as its customers’ needs evolve. And Cowbell has a diverse set of reinsurance partners, spanning over 20 prominent reinsurers globally. Its approach to assessing cyber risk and providing tailored, flexible coverage are the underpinnings of its industry leadership. The company has also pushed its omnichannel strategy forward in 2023, which differentiates its distribution model from its closest competitors, bolstering its combined retail broker and embedded insurance channels by 14% in the last year.
Consistent recognition validates the effectiveness of Cowbell’s approach. Cowbell Specialty Insurance Company (CSIC) – which is Cowbell’s wholly owned subsidiary – has earned a Financial Stability Rating (FSR) of A, Exceptional, from Demotech.
KEY QUOTES:
“Economic costs of cybercrime will reach $24 trillion by 2027, accelerating cyber insurance adoption and growth even further. We are investing in Cowbell’s strengths – its people, culture and unit economics. Prosperity7 is excited to partner with Cowbell on their path to profitable growth and near-term operating profitability as the company further cements its leadership in global SME markets.”
— Chris Zhong, Investment Principal at Prosperity7 Ventures
“Momentum and policyholder growth is strong, with record renewal retention. We just closed our largest quarter to-date on the strength of omnichannel distribution, and with a focus on servicing our broker partners and policyholders. With this new investment, we will deepen our focus on serving our chosen markets in the US and UK. This milestone is a testament to our expertise, culture, and market leadership.”
— Jack Kudale, Founder and CEO of Cowbell
