State Automobile Mutual Insurance Company’s innovation arm, State Auto Labs, has announced the launch of a $25 million corporate venture fund to support insurance-industry entrepreneurs and innovators.
State Auto Labs and start-up investor Rev1 Ventures are collaborating on the project, which will connect industry-disrupting start-ups with capital, technologists and insurance industry experts.
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“The insurance industry is in the midst of an enormous transformation and is poised for a bigger disruption over the next five years than it’s undergone over the past 50 years,” said Kim Garland, State Auto Labs managing director. “This next progression will come from both inside and outside of the insurance industry.
The insurance companies that will be successful in the future are those that leverage connections from a variety of sources.”
State Auto Labs’ venture fund will focus on four key areas:
- Technologies, such as connected devices and wearables, that connect and communicate with people, vehicles, homes and offices
- Data-driven innovations that improve analytics
- Distribution technologies that provide new ways to improve customer experience
- Products and operational solutions that anticipate the evolving needs of insurance customers and tap into new markets
“This is a critical time for the industry, and we recognize that there is a better way to support the development of innovations that will fuel business success for start-ups and deliver cutting-edge technologies for enterprises,” said Rev1 Ventures CEO Tom Walker. “This fund demonstrates Rev1’s commitment to finding new ways to identify and grow transformative technologies that are changing industries, and we’re thrilled to partner with State Auto to bring this vision to fruition.”
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