California-headquartered cyber insurance company and managing general agent (MGA) Coalition has disbanded an internal sales team but said the move is not part of any sweeping layoffs.
US-based account executives and business development staff who had held roles at Coalition took to social media, including Linkedin, on Wednesday, to share news that their roles had been cut at the San Francisco, California based cyber insurance business.
Insurance Business understands that cuts were limited to a specific internal sales unit within the company, which continues to grow, and do not signal a wider tranche of layoffs.
“No, Coalition did not conduct layoffs,” a Coalition spokesperson told Insurance Business. “A very small number of positions were eliminated after disbanding an inside sales team, or in following with our annual performance review process.”
Coalition continues to hire for a variety of roles across Australia, Canada, the UK and the US. As of Thursday it was actively recruiting security engineers, underwriting professionals, and product managers among others, according to its website.
Coalition is a San Francisco headquartered cyber insurance specialist, founded in 2017 and led by CEO and co-founder Joshua Motta.
The cyber insurance business launched Coalition Insurance Company, a full-stack cyber insurance carrier, last January.
Coalition was valued at $5 billion in 2022, when it raised $250 million in a series F round with participation from Allianz X and others, according to figures shared by the cyber insurance business.
Since launch, Coalition has debuted an array of cyber insurance products, including for cryptomining and business services fraud. It entered the excess cyber insurance market in 2020 and went on to launch its own cyber captive the following year.
Last June, Coalition unveiled the launch of its Coalition Exploit Scoring system, aimed at assisting risk managers in identifying and avoiding potential cyber threats.
The Coalition spokesperson stressed that its internal sales team cuts should not be seen as corrective layoff action, which was seen across multiple insurance and technology firms last year.
The insurance industry underwent multiple rounds of layoffs in 2023, with big name property and casualty (P&C) insurers including GEICO, Farmers Insurance, and Liberty Mutual making significant workforce cuts.
Auto insurance giant GEICO cut 6% of its workforce, or approximately 2,000 staff, in layoffs confirmed last October.
Farmers announced plans to trim its headcount by around 11% last August, laying off approximately 2,400 employees.
Liberty Mutual underwent two major rounds of job cuts last year, with the latter seeing the reduction of 850 positions last October.
Insurtechs, Lemonade and Hippo among them, also axed roles.
