Eos Venture Partners said it has closed an $85 million InsurTech investment fund that will tap into new insurance industry needs.

To be known as the Strategic Investment Fund, the investment vehicle will focus on global InsurTech companies and also encourage and help facilitate engagement between older insurance companies and “emerging technology providers.”

Insurers and reinsurers from the UK, Europe, U.S., Canada and Asia are among the fund partners, which include companies such as Tokio Marine and Direct Line Group, Eos said. So far, the fund has made six investments in the UK, U.S., China and India. According to Eos, its portfolio companies are focused on the insurance value chain in areas such as automation, AI-assisted underwriting and claims. These startups are zeroing in on product verticals such as small businesses, global supply chains, the sharing economy, auto and home insurance.

“Having insurance partners from many of the leading insurance markets and across commercial and personal lines means that we have a powerful global innovation community,” Carl Bauer Schlichtegroll, founding partner of Eos, said in prepared remarks.

Eos’s new fund comes as the COVID-19 crisis rages on. The pandemic caused a drop in InsurTech venture funding deals, but some in the sector said it spurred acceleration of certain industry technology trends. In its announcement, Eos noted the pandemic-changed market environment.

“The current COVID-19 crisis is acting as a catalyst for change and is expected to supercharge innovation activity,” Eos said. “Digital engagement, agility, flexible usage-based products, tailored pricing and remote claims assessment are now critical to remain relevant and deliver on the customer promise. Customer expectations, working patterns and awareness of risk have fundamentally changed, forcing the industry to respond.”

Penny James, CEO of Direct Line Group, said the new fund will help give its insurer partners insight about InsurTech as it evolves.

“We want to disrupt the market with new and innovative products and services for our customers, and being part of Eos’ global innovation community will help us deliver this,” James said in prepared remarks.

Eos launched in 2016 and has offices in London, UK, and Philadelphia in the U.S.

Topics Mergers & Acquisitions InsurTech Tech Funding