Coalition business insurance

Overview

Coalition is a venture-backed cyber insurance specialist. It sells what it calls "Active Insurance": a cyber policy bundled with continuous scanning of a company's internet-facing systems, security alerts, and an in-house incident response firm. Coalition says it serves more than 100,000 policyholders worldwide. It was founded in 2017 by Joshua Motta, its CEO, and John Hering.

The question buyers most need answered is who actually issues the policy. In the U.S., Coalition works in two ways:

• As an MGA and broker. Coalition Insurance Solutions, Inc. (CIS) is a licensed producer and surplus lines broker that underwrites and services policies on behalf of unaffiliated insurers. Its current carrier list includes Allianz Underwriters Insurance Company and Fireman's Fund Indemnity Corporation (Allianz), Arch Specialty (Arch Insurance), Ascot Specialty and Ascot Insurance Company, Aspen Specialty (Aspen Insurance), Chaucer Insurance Company DAC, Fortegra Specialty, Lloyd's syndicates, MSIG Specialty Insurance USA and MS Transverse Specialty (New York), Steadfast Insurance Company and Zurich American (Zurich North America), and Vantage Risk Specialty.
• As a carrier. Coalition Insurance Company (CIC, NAIC 29530) is Coalition's own admitted insurer, licensed in all 50 states. Admitted Coalition policies are written on CIC paper.

Your policy's declarations page names the issuing insurer, and Coalition tells customers to check it. CIC is a small part of the picture: it is the only member of the "Coalition Inc Group" in NAIC's filings, and much of the capacity still comes from partners, now led by Allianz.

CIS is paid from the premium it collects. It keeps a share to pay broker commissions and run underwriting and service, and passes the rest to the carriers. It also receives additional payments from carriers tied to the loss ratio of its book, which gives it a direct financial reason to prevent claims.

History

• 2017: Founded in San Francisco by Motta, a former Cloudflare executive, and Hering. It sold its first policies through brokers on partner carriers' paper as a cyber MGA.
• July 2022: raised $250 million at a $5 billion valuation, following a $205 million Series E that had valued it at more than $3.5 billion.
• June 30, 2022: Allianz agreed to provide multi-year capacity, taking a share of Coalition's U.S. non-admitted cyber programs and leading its U.K. launch. Allianz X also invested in Coalition that year.
• August 15, 2022: bought Digital Affect Insurance Company, licensed in all 50 states, from Munich Re Digital Partners; it became Coalition Insurance Company.
• October 2022: Ferian Re, an independent Bermuda reinsurer backed by about $300 million from a BDT Capital Partners-led group, launched to reinsure Coalition's cyber programs.
• January 30, 2023: launched CIC as an admitted cyber carrier with an AM Best A- rating, and began quoting admitted cyber that March.
• November 2023: Allianz SE CEO Oliver Bäte joined Coalition's board.
• November 6, 2025: acquired Wirespeed, an automated managed detection and response (MDR) provider.
• May 6, 2026: Allianz Commercial agreed to transition its standalone commercial cyber business to Coalition and make it Allianz's exclusive global cyber partner for at least 10 years. Allianz will provide long-term capacity and distribution and receive more Coalition equity plus a board seat. Coalition takes over pricing, product and claims. Large corporate accounts (generally $1 billion or more in revenue) stay on 100% Allianz paper, and smaller accounts move into Coalition's carrier quota share program. Coalition's FAQ says integration begins after closing, from mid-2026. No closing announcement had been published by October 2026.
• July 15, 2026: launched Active Cyber Insurance for Enterprises in the U.S. with up to $25 million of limits, primary or excess.

Business insurance products

Cyber. The flagship policy combines first-party and third-party coverage: breach response costs (on a separate limit), cyber extortion and ransomware including pay-on-behalf ransom payments, direct and contingent business interruption, data restoration, computer replacement ("bricking"), crisis management and PR, reputational harm, funds transfer fraud and social engineering (see business email compromise and funds transfer fraud coverage). Policies include a two-hour legal consultation with a panel breach coach and access to Coalition Incident Response at no cost. Limits go up to $25 million per policy since the Allianz deal, and Coalition also writes excess cyber.

Technology E&O and professional liability. Tech E&O for technology companies (see Technology E&O insurance for software, SaaS and IT firms) and miscellaneous professional liability for professional service firms.

Executive risks. D&O, EPL, fiduciary and crime, sold as a management liability package for private companies and nonprofits.

Security products. Coalition Control, the risk management platform, scans a policyholder's digital footprint, sends alerts and offers security tools, while Coalition Security (Coalition Incident Response) does forensics and response. Coalition also sells Wirespeed automated MDR, security awareness training and an AI SOC product, including to businesses that do not buy its insurance.

Who it insures

Coalition built its book on small and midsize businesses, and its U.K. and Australian appetites reach companies with up to £1 billion and A$2 billion of revenue. In the U.S. it now writes enterprises too, up to $25 million of limit. Its pricing and underwriting draw on its own scans of each applicant's internet-facing systems. Expect questions on the controls in MFA, EDR and backups: the controls cyber insurers now require, and expect Coalition to flag vulnerabilities during the policy term.

How to buy

Through a broker. CIS appoints insurance brokers, who quote and bind on Coalition's broker platform, with live chat support 8 a.m. to 8 p.m. ET on weekdays. Brokers receive a base commission and may earn contingent commissions and new-business incentives, which Coalition discloses on its producer compensation page. A business can run a free cyber risk assessment on Coalition's site but cannot buy a policy there directly.

Claims

Call 833-866-1337 as soon as you suspect an incident. Coalition says its average response is five minutes after notification, and it encourages early calls because pre-claims assistance does not by itself trigger a claim. Have your company details, when and how you noticed the incident, and a designated internal contact ready.

Coalition Incident Response handles forensics and recovery where it operates, though policyholders can choose other panel or approved providers under their policy terms. Coalition's 2026 claims report says business email compromise and funds transfer fraud made up 58% of claims, initial ransom demands rose 47% to an average of more than $1 million, 86% of ransomware victims refused to pay, and it recovered $21.8 million of stolen funds. Those figures are Coalition's own. For the overall process, see what happens when you file a cyber claim.

Financial strength and ratings

Coalition, Inc. is not an insurer and has no financial strength rating. Its carrier, Coalition Insurance Company, was rated A- (Excellent) by AM Best when it launched in January 2023. AM Best affirmed the A- rating and stable outlook on March 28, 2024, calling CIC's balance sheet strength very strong. Coalition's site now advertises "Allianz's A+ rated capacity" for its programs. On surplus lines policies, the rating that matters is the issuing partner's, which is why the carrier named on your policy matters.

Coalition is private and does not publish financial statements. Its claim statistics, including a frequently cited claims frequency below the industry average, come from its own reports.

Strengths and weaknesses

Coalition pairs a broad cyber form with security tools that most carriers do not offer, and the Allianz deal gives it capacity for much larger limits. The trade-off is complexity: the issuing insurer varies, the company is private and venture-funded, and its own carrier is small.

• Strengths: Continuous scanning and alerts during the policy term, in-house incident response and funds-recovery work. Breach response on a separate limit and pay-on-behalf ransom coverage. Admitted and surplus lines options in all 50 states. Long-term Allianz capacity of up to $25 million per policy, with an Allianz CEO on its board.
• Weaknesses: Most policies are issued by partner carriers, so the insurer, its rating and guaranty fund protection vary policy by policy. Its own carrier's A- rating was last publicly affirmed in March 2024. It sells only through brokers. The Allianz transition was announced but not yet reported closed, and it will bring a large book onto Coalition's platform in phases.

How to contact Coalition