Walnut: Insurance Distribution with Embedded Technology

Walnut, an innovative force in the insurance distribution industry, has announced the successful close of its latest funding round, securing US$4.6m.

The investment will be used to expand Walnut's groundbreaking embedded insurance technology platform for insurers, brokers and enterprise businesses looking to participate in the future of insurance distribution.

The round was led by NAventures, the venture capital arm of National Bank of Canada, with support from TELUS Global Ventures, Diagram Ventures, Portage, and Highline Beta. The investment from these prominent Canadian backers marks a significant step for Walnut as it pushes forward to modernise and simplify insurance distribution. Diagram, which has recently moved beyond its traditional venture studio approach to include external investments, has added Walnut to its portfolio, reflecting strong belief in the team’s potential to reshape the insurance sector.

Walnut uses advanced technology and key partnerships to build a more efficient and sustainable business model. By integrating insurance products directly into the offerings of enterprise businesses and financial institutions, Walnut eliminates substantial marketing costs and drives distribution through partner channels. This approach not only creates a more sustainable path for insurers but also ensures consumers access personalised insurance solutions exactly when and where they need them.

"The insurance industry has yet to complete its digital transformation, with many insurers and brokers still operating in traditional, non-digital fashions. We aim to leapfrog traditional digitisation and support a modern API-enabled embedded distribution strategy," says Adrien Niblock, CPO and Co-founder of Walnut.

"Our embedded insurance platform captures distribution, supports insurers and brokers with embedded-first infrastructure, and delivers products to our customers in a compliant manner. This funding allows us to expand our technology stack, scale our operations, and bring innovative insurance solutions to both insurers and businesses looking to drive new revenue streams."

Walnut’s Solution

• Digitises and optimises products and customer journeys
• Enables API-driven product delivery
• Drives compliant and effective multi-channel delivery
• Enables partner co-branding and headless insurance distribution
• Delivers instant quote and bind experiences
• Supports policy delivery and management

Walnut's platform allows partners to quote and enroll customers in nearly any insurance product instantly within co-branded consumer experiences, advisor-driven processes, or seamlessly via API. Offering flexibility, it integrates insurance into various digital ecosystems within 30-90 days, compared to the years it usually takes. This comprehensive system ensures smooth multi-channel delivery, enhancing customer experience and improving product reach.

For insurers and brokers, Walnut's platform offers significant advantages like profit sharing over upfront marketing costs, better risk management, and access to new distribution channels. Partners gain increased ARPU, stronger customer relationships, and reduced churn. Consumers benefit from timely insurance offerings with less effort, thanks to data-driven processes and cohesive brand experiences.

While Walnut supports the delivery of many insurance products, in the current macroeconomic climate, with increasing loan defaults and financial instability, Walnut's focus on loan and debt protection products is timely. These products are designed to safeguard consumers against income loss, providing crucial support in uncertain times. As mortgage renewals loom for many, Walnut's creditor insurance offerings aim to protect both consumers and financial institutions.

"Walnut's unique approach to embedded insurance distribution aligns with our vision of supporting transformative technologies that have the potential to drive significant industry change," said François Lafortune, CEO of Diagram Ventures. “Over the last two years, in addition to Diagram's historical Venture Builder activities, we've made a number of investments in high-quality external pre-seed to Series A companies. We think this complements what we have historically been doing and we are excited to support a broader group of companies, like Walnut, with our ecosystem,” adds François.

“We are proud to support Walnut in their next phase of growth. Our ongoing investment and partnership reflect our confidence in their vision and execution,” says James Povitz, Principal at NAventures.

Walnut will utilise the newly secured capital to enhance its technology platform for insurers and brokers, expand its engineering team, and form new partnerships. The company is also poised to enter new markets, capitalizing on the massive opportunity to effectively deploy replicable embedded insurance solutions.

What is Walnut Insurance

Walnut Insurance provides an embedded insurance platform designed to simplify and modernise the insurance purchasing experience. The platform allows partners to integrate insurance offerings into their existing products and services, enabling them to offer insurance under their brand within 30 days or less. This approach facilitates a seamless, digital-first experience for customers, making insurance more accessible and convenient.Walnut's platform supports a wide range of insurance products, including both Property & Casualty and Life & Health insurance, and partners with over 15 carriers. The company collaborates with various Canadian brands such as Neo Financial, ATCOenergy, Tim Hortons, and TELUS Communications to deliver customized insurance solutions