The funding will help grow the insurtech’s product road map and global expansion

Insurtech and cloud-based platform provider Novidea has secured $30m in series B financing to support its accelerated growth.

The funding round was led by Israel Growth Partners (IGP), with JAL Ventures, KT Squared and 2B Angels also participating.

Roi Agababa, Novidea’s chief executive, said: “Novidea is witnessing an increased global demand for its cloud-based insurance platform that translates insurance parameters into real-time business insights with advanced analytic capabilities and actionable information.

“We are excited about the partnership with IGP and their trust in our vision. The additional investment will enable Novidea to respond to the growing demand for our products, to accelerate our product road map and to double down on our global expansion.”

Radical transformation

With the global insurance market currently undergoing radical transformation - including the entry of new players, consolidation of existing firms and plenty of regulatory changes - insurers are encumbered by legacy systems that are limited, inflexible and expensive to update, according to Novidea. 

This is accompanied by customers’ increased demand for an enhanced service experience, often driven by digital transformation, the firm said.

Novidea believes that numerous insurance companies are overwhelmed by the gap between current customer requirements and the outdated, rigid and overpriced technologies available to date.

Novidea’s customers, meanwhile, have access to an advanced insurance platform that allows for policy sales growth, increased profitability and enhanced operating efficiency, with analytical tools and business insights accessible in real-time.

Assaf Harel, general partner at IGP, added: “While innovative direct-to-consumer business models are making waves in the market and forcing carriers to adapt, the traditional insurance agency ecosystem is significant and growing, but still very conservative and relies primarily on software systems written 15 to 20 years ago, as well as manual work.

“Novidea aims to lead the digitalisation of the insurance distribution industry with an innovative, cloud-based insurance platform that couples end-to-end management with actionable insights to enable customers to dramatically increase operational efficiencies and revenue and gain an unfair advantage in their respective markets.”