[Exclusive] POSCO Technology Investment Invests 1 Billion KRW in Insurance Startup 'Toggle'

Non-face-to-face Insurance Platform Market Deemed Highly Viable
Insurance Enrollment Possible by Hour or Day
Startup Growth Period Shortened Compared to Past... Investment Recovery Period Also Accelerated

[Asia Economy Reporter Hwang Yoon-joo] POSCO affiliate POSCO Technology Investment has invested 1 billion KRW in the insurance startup ‘Toggle’.

According to the investment banking (IB) industry on the 12th, POSCO Technology Investment recently decided to invest 1 billion KRW in ‘Toggle’. POSCO Technology Investment is a venture capital firm of POSCO and POSTECH (Pohang University of Science and Technology).

Toggle is currently raising a Series A round investment of around 3 billion KRW, of which POSCO Technology Investment will invest 1 billion KRW. The Series A stage is the phase where products or services that have passed market validation are prepared for official launch. The investment size at this stage is usually between 1 billion and 3 billion KRW.

Toggle, established in November 2019, is a non-face-to-face mini insurance platform. Unlike traditional insurance that provides services in units of 10 to 30 years, it was created to offer mini insurance services by the hour or day through an app. It is known to be preparing 18 insurance products across six categories including travel, drivers, automobiles, pets, housing, and cyber.

POSCO Technology Investment highly evaluated the growth potential of the mini insurance market and proceeded with the investment. They judged that demand for mini insurance would increase as the understanding of the financial market among the 20s and 30s generation grows. According to the Insurance Research Institute’s report titled ‘Characteristics of Recent Changes in Insurance Premium Expenditure by Household Characteristics,’ after COVID-19, discretionary insurance spending decreased relatively in middle-class households, and the only age group whose insurance premium expenditure decreased in 2022 compared to 2019 was households under 39 years old. The Insurance Research Institute analyzed that the younger generation reduced insurance premium spending and invested more in stocks and coins.

The fact that it is a non-face-to-face insurance platform also seems to have increased its investment appeal. An executive from a domestic private equity fund said, "Recent investment trends are heavily focused on three areas: platforms (tech), ESG (environment, social, governance)-related industries, and lifestyle convenience platforms (such as Market Kurly, Laundriego, etc.)." He explained, "Unlike in the past, the period from startup growth to listing has shortened, so not only venture capital but also private equity funds are actively investing in Series A rounds in this field."