Greenlight Re Innovations (GRI), part of Greenlight Capital Re Ltd., announced an investment in AuditCover Australia Pty Ltd., a tax audit insurtech.
The amount of the investment was not disclosed.
AuditCover is an insurance distribution platform that combines the fundamentals of tax audit insurance with rapid data ingestion and modeling software to allow taxpayers to be instantly covered for professional fees when faced with an audit.
Audit insurance is offered to businesses, individuals, and trusts to provide financial protection against professional fees incurred from a tax audit or investigation undertaken by authorized regulators. An audit insurance policy is traditionally paper-based, labor-intensive and slow, explained Greenlight Re Innovations in a statement.
Conversely, by connecting directly to accountants’ core systems, AuditCover streamlines and automates the quote and bind process, providing instant coverage to taxpayers for audit-driven professional fees they incur. AuditCover explained on its website that it protects accounting firms, financial planners. advisers, service providers (intermediaries) and their clients from the hefty expenses that come with being audited.
The company is currently offering audit insurance policies in Australia and has plans to expand internationally in the near future.
Operating as a managing general agent, AuditCover’s cover is underwritten by companies including HDI Global Specialty SE and Insurtech Gateway Australia Pty Ltd.
“In many nations, growth in the gig economy and digital assets has caused increases in the complexity of tax returns and the frequency of tax audits,” said Simon Burton, chief executive officer at Greenlight Re.
“We believe that by leveraging advancements in technology, AuditCover is well-positioned to service this expanding market and provide a superior experience for all parties involved,” he added.
“We’re living in an era where the tax office has edged far ahead of the free market in terms of data-matching capabilities. AuditCover is on a mission to even the playing field by accessing the real-time data feeds that will determine greater risk accuracy and prevent the severity of an audit in the first instance,” commented Gil Snir, founder and chief executive officer at Sydney-based AuditCover.
“This is a global challenge faced by most developed nations and we’re excited to have strategic capital partners Greenlight Re on our journey. Their global footprint and innovative approach to reinsurance are well aligned with our vision for the company and the broader insurance landscape,” Snir continued.
About Greenlight Re
Greenlight Re provides multi-line property/casualty reinsurance through its licensed and regulated reinsurance entities in the Cayman Islands and Ireland. The company complements its underwriting activities with a non-traditional investment approach designed to achieve higher rates of return over the long term than reinsurance companies that exclusively employ more traditional investment strategies. In 2018, the company launched its Greenlight Re Innovations unit, which supports technology innovators in the re/insurance space by providing investment, risk capacity, and access to a broad insurance network.
Source: Greenlight Capital Re Ltd.
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