The Wesure Global Tech technology and insurance group released a prospectus last week for an IPO on the Tel Aviv Stock Exchange. The company’s intention is to raise 30-50 million dollars, according to a valuation of 150 million dollars, after the money. The company says that the offering is aimed at accelerating the group’s business plan under which it will be expanding its areas of activity and its market share in Israel and also deploying for entry into activity in Europe and the United States. The offering is being led by Poalim IBI.
The company, which was founded in 2016, is controlled by Emil Weinschel and Nitzan Tzair-Harim, both of them in the past senior executives with over twenty years of experience in the Israeli insurance and finance industry.
The aim of the group, which operates in the growing Insuretech industry, is to make the products in the insurance sector, which are regarded by the public as being complex and complicated, into products that are simpler and more intuitive, with an ongoing purchasing and management experience that can be carried out online independently by the customer, using the Mobile First approach. The aim is to make the insurance sector accessible 24/7, using interfaces that are transparent and flexible for the public, using various advanced technologies, all of them reducing the use of printed documents and forms.
In order to realize the business strategy, it was decided to split between two operating arms. One of them will focus on initiation, development, marketing and sales of new technologies and modules for digital platforms in the insurance sector in Israel and overseas, which will also initiate the expansion of the business activity abroad via the Wesure Global Tech company, with the other arm managing the digital insurance activity in Israel as an insurer, via the Wesure Insurance Company subsidiary. Two subsidiary companies were set up in 2020 – Wesure USA Holdings and Wesure Digital Insurance Services Inc, held 100% by Wesure Global Tech, for the expected expansion into the elementary insurance market in the USA. The group is thus expected to be joining additional digital insurance companies operating in the USA (some of which were founded by Israeli entrepreneurs) including HIPPO, Next Insurance, Lemonade, Metromile, Root and others. The Wesure group’s operating plan includes the setting up of activity initially in Israel as an insurer, despite the barriers existing in the market, strengthening the business model, with appropriate technological capabilities, and only then entering the US market. The group is already posting profits after two years of activity in the motor insurance sector in Israel, which is something of a first in global terms.
The company is expected to receive an MGA or insurance producer in a number of States in the USA during the first half of 2021.