Earlier this week, HUB International (HUB), a leading global insurance brokerage and financial services firm, in partnership with Bold Penguin, an InsurTech, agreed to acquire Insureon.

Insureon is the largest independent agency in the U.S. for digital delivery and fulfillment of commercial insurance to small businesses. As a digital-first brokerage, Insureon brings capabilities in digital customer experience and design that enables customers to shop, compare, buy policies and manage their coverage online. Annually, Insureon services more than 350,000 customers in all 50 states and has a broad panel of insurance company partners.

In 2021, insurance agency mergers & acquisitions were up 30% from the 795 reported in 2020, according to OPTIS Partners. The Insureon deal also represents a trend of brokers acquiring technology platforms to scale their business model. In 2020, Aon purchased Coverwallet and in 2021 Brown & Brown acquired CoverHound.

M&A within the InsurTech space is similarly active. Last year Vertafore acquired AgencyZoom, Zywave acquired ClarionDoor and Ivans acquired Ask Kodiak.

Insureon will enable HUB to more efficiently serve its association and affinity group clients. It also expands HUB's network to develop, offer and distribute a new generation of proprietary insurance products in collaboration with carriers. Meanwhile, the acquisition of the Insureon technology platform will solidify Bold Penguin's position as the leading commercial insurance marketplace for enterprise and retail insurance agencies.

The acquisition “substantially increases the scale and depth of HUB's digital capabilities," said Marc Cohen, HUB president and CEO. “Our unwavering commitment to solving the challenges our clients face is made stronger with tech-enabled solutions that allow us to meet customers where they are and how they want to secure insurance."

"The addition of Insureon and our partnership with Bold Penguin—leaders in InsurTech innovation—not only strengthens our unique market position but accelerates our digital capabilities," Cohen said. “The one constant in our ever-changing climate is that customers want choice. We are positioned to deliver omnichannel solutions that will continue to evolve and keep pace with our client's needs. This is just the beginning."

Bold Penguin will acquire Insureon's cloud-based technology platform and continue to serve Insureon's enterprise software and service as a software (SaaS) clients, expanding Bold Penguin's depth of products, carriers and clients.

"Bold Penguin shares HUB's passion for innovation and making small commercial insurance easier and more efficient to access," said Ben Clarke, chief data officer and co-founder of Bold Penguin. "We have a tremendous future together delivering a digitally transformative experience for HUB's clients and prospects as we leverage Insureon's innovative solutions to extend the market-leading capabilities of Bold Penguin's commercial insurance exchange."

"From the start, both HUB and Bold Penguin demonstrated their commitment to our vision of creating positive changes in the small commercial marketplace through e-commerce and technology," said Dan Kazan, CEO of Insureon, who will join both companies to help them continue to grow and innovate.

"For more than a decade, Insureon has built the industry-leading insurance technology platform for small business," Kazan added. “By combining Insureon's leading technology, HUB's investment and pulse on customer expectations, and Bold Penguin's commitment to serving small businesses, we are helping to create the future of the small commercial marketplace."

Will Jones is IA editor-in-chief.