US Insurtech Socotra Insurance closes US$50mn Funding Round

Socotra Insurance provides core technology services and insurtech solutions to leading insurers across three continents with its low-code solutions

The Texas-based insurtech technology solutions provider Socotra has closed its latest funding round with a capital total of US$50mn raised. 

Socotra, which was launched in 2014, has built a reputation for itself within the global insurance industry, for assisting legacy system businesses adjust to the new digitised products and services. The insurtech’s core platform acts as an alternative to the fragile, monolithic policy administration systems many leading insurers still rely upon. Socotra also provides a number of key insurtech solutions to insurance industry leaders. 

New funding for Socotra Insurance to enhance its growth strategy

The Series C funding round which raised a total of $50mn was led by Insight Partners. Existing investors 8VC, Portage Ventures, Brewer Lane, MS&AD Ventures, and Nationwide Ventures also participated in this round, bringing total funds to date raised by Socotra Insurance, to $96mn.

Current customers of Socotra include AXA, Mutual of Omaha, Symetra, MS Amlin, and IAG, as well as leading insurtech MGAs such as Hippo and Bamboo Insurance.

According to reports, the insurtech is planning to use the generated funding to expand its functionality, widen its marketplace presence across Europe and Australia, strengthen customer success infrastructure, and extend its ecosystem capabilities through the Socotra marketplace - a no-code app platform that enables instant integrations with third-party technology providers.

Core technologies and legacy systems in insurtech

Speaking about Socotra’s successful funding drive, Dan Woods, the insurtech’s founder, and CEO, explained, “Many of today’s core system providers bill themselves as modern without having basics like documentation or continual upgrades.”

He continued, “In stark contrast, Socotra is API-driven, well-documented, cloud-native, and a true off-the-shelf product. What takes legacy technology months or even years with armies of custom developers, (our) customers can accomplish in weeks—and then upgrades are free, automatic, and non-interruptive. Now with the support of Insight Partners, Socotra is positioned to scale faster and deliver even more value for the insurance community in the years ahead.”

According to its leaders and collaborative partners, Socotra’s next-generation platform enables customers to adopt cloud-native software through the use of APIs and microservices architecture. Jonathan Rosenbaum, managing director at Insight Partners, said, “This innovation improves the speed of delivery and reduces total cost of ownership for innovative insurers who want to launch new products or rearchitect existing lines of business.”

He added, “Ultimately, this leads to material value for the end consumers looking for customized insurance products with fast time to purchase. We at Insight are excited to partner with Socotra on this next chapter of its growth journey.”


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