Erie Insurance launches venture capital fund to accelerate innovation

Rhea-AI Summary

Erie Insurance has launched Erie Strategic Ventures, a venture capital fund aimed at investing in startups within the insurance industry. This initiative underscores ERIE's commitment to innovation and entrepreneurship, focusing on areas such as risk management, claims, and digital sales. The fund will primarily target early-stage companies across North America, leveraging ERIE's extensive industry experience and resources to support portfolio startups. With $7.9 billion in direct written premiums in 2021, ERIE is a major player in the insurance market, enhancing its competitive edge through strategic partnerships and capital investment.

Positive

• Launch of Erie Strategic Ventures to foster innovation in the insurance sector.
• Focus on early-stage investments, enhancing ERIE's competitive positioning.
• Partnership with Touchdown Ventures to leverage expertise in corporate venture capital.
• Potential to unlock new revenue streams through startup investments.

Negative

• None.

Erie Strategic Ventures will invest in and offer commercial support to startups focused on the insurance industry and related spaces

ERIE, Pa., Aug. 25, 2022  /PRNewswire/ -- Erie Insurance, an auto, home, business and life insurance company based in Erie, Pennsylvania, today announced the establishment of Erie Strategic Ventures to support visionary entrepreneurs. The fund is the most recent example of ERIE's commitment to supporting entrepreneurship and delivering innovative products, services and experiences to its customers and network of independent agents.

Erie Strategic Ventures' focus will span the personal and commercial insurance value chain as well as natural adjacencies that offer potential to deliver value to ERIE customers and agents. Initial areas of interest include insurance innovation in risk avoidance, claims, underwriting, digital sales, agency productivity tools, and products and services for home, families and small businesses. The fund is stage and geography agnostic but will focus primarily on early-stage investments in North America.

"We are excited to build upon our expanding innovation efforts with the launch of this venture fund," said Keith Kennedy, senior vice president for Next Level Innovation at Erie Insurance. "ERIE is committed to a culture of service and our corporate values will translate well into supporting the founders we invest in."

Erie Strategic Ventures is the venture capital arm of Erie Insurance, a Fortune 500 insurance company that generated $7.9 billion in direct written premium in 2021. Founded in 1925, ERIE is the nation's 11th largest homeowners insurer, 13th largest automobile insurer and 13th largest commercial lines insurer based on direct premiums written. ERIE is rated A+ (Superior) by A.M. Best and has more than six million policies in force.

In addition to capital, Erie Strategic Ventures will leverage ERIE's industry leadership and value proposition to support portfolio companies. With nearly 100 years of insurance expertise, ERIE has the potential to serve both as a customer and development partner for startups. ERIE will seek to partner with startups to bring innovative products and services to market, leveraging a strong network of independent agents across 12 states and Washington D.C.

Erie Strategic Ventures will partner with Touchdown Ventures, a firm specializing in corporate venture capital, which will work closely with senior executives at ERIE on fund operations.

"We are thrilled to partner with a values-driven company such as Erie Insurance that has the scale, resources and ability to make a positive impact on the corporate venture landscape," noted Rich Grant, co-founder and managing director of Touchdown Ventures. "Our combined Erie Strategic Ventures team has significant insurance industry and corporate venture capital experience. We will leverage this expertise and ERIE's unique position in the market to support entrepreneurs."

Learn more about Erie Strategic Ventures at www.erieinsurance.com/ventures.

About Erie Insurance
According to A.M. Best Company, Erie Insurance Group, based in Erie, Pennsylvania, is the 11th largest homeowners insurer, 13th largest automobile insurer and 13th largest commercial lines insurer in the United States based on direct premiums written. Founded in 1925, Erie Insurance is a Fortune 500 company and the 19th largest property/casualty insurer in the United States based on total lines net premium written. Rated A+ (Superior) by A.M. Best, ERIE has more than 6 million policies in force and operates in 12 states and the District of Columbia. News releases and more information are available on ERIE's website at www.erieinsurance.com.

About Touchdown Ventures 
Touchdown Ventures partners with corporations to manage their venture capital programs. Touchdown works closely with each corporation to achieve the financial and strategic benefits from venture capital investments. The firm is a Registered Investment Adviser and maintains offices in Los Angeles, Philadelphia, and San Francisco. More information on Touchdown can be found at www.touchdownvc.com.

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SOURCE Erie Indemnity Company