Buckle, an InsurTech startup focused on rideshare insurance, has acquired a subsidiary of Atlas Financial Holdings for an undisclosed price.
The move allows Buckle to expand its commercial auto coverage capacity and reach via a partnership with Atlas.
Buckle’s purchase of Gateway Insurance Company includes its 47 state insurance licenses. Gateway provided auto insurance to the light automobiles market in the U.S. Atlas primarily focuses on U.S. commercial auto insurance, zeroing in on the “light” commercial automobile sector in areas such as taxi cabs, non-emergency para-transit and limousine/livery.
Buckle said it made the decision to purchase Gateway as a way to support a managing general agency owned by Atlas – Anchor Group Management Inc. By doing so, Buckle will now be working with Atlas to sell “comprehensive, affordable” auto insurance to the commercial auto market for clients including part-time rideshare and delivery drivers, full-time taxicab and limousine drivers, non-emergency paratransit drivers, and transportation network companies (TNCs).
The deal calls for Buckle to support Anchor Group as it scales annual premiums, the companies said. As well, Anchor Group will transition Atlas’ taxi, livery and full-time TNC driver policies from its pool of subsidiaries over to Gateway.
The companies describe their transaction as a “re-capitalization” of Gateway. Funding for the deal came from clients of Hudson Structured Capital Management Ltd., (doing its insurance/reinsurance business as HSCM Bermuda Management Company).
Buckle co-founder Marty Young said in prepared remarks that the partnership will drive down the costs of insurance.
“Every time Buckle sells a policy, it’s TNC partner’s balance sheet improves as risk is moved from the TNC to the independent contractors,” he explained.
Buckle, based in Georgia, debuted its driver rideshare policy with personal and commercial cover in February. The company’s official launch came after a pilot test of the coverage with hundreds of drivers in Georgia in 2019.
As Buckle’s website notes, it is regulated by state insurance commissioners and backed by Munich Re and Clear Blue Insurance.