Massachusetts-based online insurance marketplace EverQuote Inc. (Nasdaq: EVER) has announced plans to acquire Crosspointe Insurance & Financial Services LLC, an Evansville-based health insurance agency. EverQuote says Crosspointe will grow its digital distribution platform to a direct-to-consumer agency model within the health insurance market.
The acquisition is expected to close by the end of the third quarter. Financial terms of the agreement were not disclosed.
“Crosspointe’s agency expertise and carrier relationships, combined with EverQuote’s data-driven insurance marketplace platform, consumer volume, and distribution, will position us to deepen our customer engagement, further diversify and grow revenues, and capitalize on the expanding market opportunity in health insurance,” said Seth Birnbaum, chief executive officer of EverQuote. “Their team is an ideal addition to EverQuote as we deepen our role in the distribution of insurance products while easing the effort and complexity for consumers to protect life’s most important assets — their family, property and future at an affordable price.”
Crosspointe is a sales and support contact center that connects consumers to healthcare insurance. EverQuote says the acquisition broadens the company’s ability to “access the $130 billion commission TAM component of the overall insurance distribution spend, shifting online.”
“Crosspointe is very excited about the opportunity to partner with EverQuote’s data and tech-centric culture to help bring our offerings to a broader range of consumers who are increasingly looking online for insurance,” said Drew Shockley, co-founder of Crosspointe. “Together we are uniquely positioned to address the growing diversity of products in the individual and family health, Medicare, and ancillary health product categories, with consumers’ desire for thoughtful guidance in unified destination advisory and distribution platforms.”
According to the company, the health insurance market is undergoing a transformation from offline to online distribution amid the coronavirus pandemic. EverQuote says the transformation demands investment in data-driven online experiences that deliver ease of purchase while still providing quality support.