Argyle Insurance, an Australian underwriting agency specialising in small and medium-sized enterprise (SME) insurance, has announced securing a strategic investment from Correlation, a global investment firm backing insurance-focused ventures.
The capital infusion is intended to accelerate Argyle’s growth by enhancing its technology platform, diversifying its product range, and strengthening its broker network across the country.
Anthony Day, co-founder and managing director of Argyle Insurance, highlighted the strategic importance of the partnership.
“With this investment, we can accelerate our mission to be Australia’s leading underwriting agency while maintaining our unwavering commitment to the broker channel,” he said.
Correlation’s managing partner for Australia, Doug Laburn, expressed confidence in Argyle’s business model, citing its focus on broker relationships, underwriting capabilities, and scalable technology.
“We have absolute confidence in the fantastic team at Argyle. Their quality of broker relationships, underwriting, scalable technology stack, and service culture makes for a unique offering,” he said.
This development comes as Australian SMEs grapple with rising insurance costs.
Research from Business NSW showed that one in four small businesses in New South Wales experienced premium increases of more than 30% in the past year. Furthermore, 22% of SMEs reported being underinsured, while 12% chose to forgo non-mandatory insurance entirely.
Economic factors, including higher interest rates and increased operational expenses, are expected to intensify financial pressures on small businesses.
The Argyle-MSI partnership could address these challenges by providing brokers with access to tailored insurance solutions and tools to serve their clients more effectively.
Matthew Morgan, Argyle’s co-founder and CEO, emphasised the role of brokers in the company’s operations.
“This investment will enable us to enhance our service offering, extend our market reach, and continue to develop innovative products that address the evolving needs of Australian businesses,” he said.
The investment follows Argyle’s partnership with Mitsui Sumitomo Insurance Co Ltd (MSI), a subsidiary of MS&AD Insurance Group, to offer expanded coverage for Australian SMEs.
Effective January 2025, the collaboration will allow Argyle to introduce business insurance packages with combined coverage limits of up to $7 million.
Day noted that the partnership with MSI reinforces Argyle’s ability to meet the needs of brokers and their clients.
Morgan said that the agreement reflects shared goals between the two companies.
