CALGARY, AB, June 19, 2025
Insurance Tech Startup Lands Major Funding
Modular Solutions, a Calgary-based insurance software provider, has secured notable funding to fuel its growth and innovation.
- Modular Solutions closed a financing round from a strategic industry partner and private investors.
- The funding will optimize client onboarding, enhance the platform, and advance AI integration.
- The capital raise represents the fifth-largest seed stage financing for Insurtech companies in North America.
Modular Solutions, a leading provider of configurable insurance software, has successfully closed a financing round, a move that will allow them to optimize client onboarding and enhance their platform. The financing was facilitated by Tailwind Ventures and includes investment from a strategic industry partner and a syndicate of private investors.
Modular Solutions develops next-generation insurance SaaS technology. Their platform enables providers to move away from outdated software,leading to increased operational efficiency,financial performance,and a better customer experiance. The technology transforms workflows and automates time-consuming operations.
Did you know?-SaaS stands for Software as a Service. It is indeed a software distribution model where a third-party provider hosts applications and makes them available to customers over the Internet.
“this capital raise marks a pivotal moment for Modular,” said Braden Bosch, Founder and CEO of Modular solutions. “We have brought an innovative software solution to the market, and with this investment, we can ensure low total cost of ownership and affordability while continuing to optimize and enhance our offering even further.”
Darren Engels, Tailwind Ventures CEO, shared his enthusiasm. “Tailwind is delighted to have supported Modular in securing this financing. Braden and the team at Modular are building transformative solutions for an industry in desperate need of innovation, and our capital partners share our conviction that Modular will deliver.” Engels added that Tailwind is committed to helping companies scale and attract capital.
Reader question:-What are the biggest challenges facing insurance companies when adopting new software solutions?
Cody Church, Director of Clear North Capital, also expressed excitement about the investment. He noted the strategic nature of the investors, which includes local high-net-worth individuals and venture firms that bring significant value to the business. This network reinforces the company’s vision and fosters collaboration in the insurance industry.
Modular’s capital raise was the fifth-largest seed-stage financing for Insurtech companies in North America. The company also achieved the second-highest pre-money valuation among the group. Bosch remains the majority shareholder and is committed to the company’s vision of enabling the best insurance experience.
Did you know? Modular Solutions was founded in 2015, and is based in Calgary, canada. They offer a platform designed to be affordable and configurable, empowering businesses to innovate.
Modular Solutions’ platform allows insurers, mutuals, MGAs, and brokers to manage their entire operations seamlessly through a single software solution.
Tailwind Ventures empowers early- and growth-stage companies to secure capital. Since 2022,Tailwind Ventures has raised over C$370 million for its clients. The company is also based in Calgary, Canada.
The Role of NAIC in Insurtech & Insurance Regulation
As Modular Solutions, a Calgary-based Insurtech company, capitalizes on its recent funding, it’s meaningful to understand the broader regulatory habitat in wich it operates. the National Association of Insurance Commissioners (NAIC) plays a significant role in overseeing the insurance industry,including the burgeoning Insurtech sector. The NAIC provides expertise, data, and analysis to insurance commissioners, ultimately protecting consumers [[3]].
The NAIC is instrumental in establishing a consistent regulatory framework across states,ensuring fair practices and solvency within the insurance industry. This helps innovative companies like Modular Solutions navigate the complexities of insurance laws.
Key Roles of the NAIC
The NAIC’s influence stretches in multiple directions:
- Standardization: The NAIC develops model laws and regulations. These serve as a template that states can adopt. This minimizes compliance burdens for companies operating across state lines.
- Data Collection and Analysis: The NAIC gathers and analyzes vast amounts of data from insurance companies.This information assists regulators in monitoring the financial health of insurers and detecting potential risks.
- Consumer Protection: A core mission of the NAIC is protecting insurance consumers. The organization provides educational resources and handles consumer complaints.
- Insurtech Oversight : The NAIC actively monitors Insurtech developments, providing guidance and resources to regulators regarding new technologies and business models.
The NAIC actively tracks Insurtech activity.They offer insights and resources about the ways that technology is transforming the industry [[1]].
How the NAIC’s Work Affects Insurtech Companies
For companies like Modular Solutions, the NAIC’s work has several significant implications:
- compliance: Insurtech companies must adhere to state regulations, which the NAIC helps to shape.
- Market Access: Following the NAIC’s guidelines can streamline the process of entering new markets, as companies are frequently enough required to meet similar standards.
- Innovation: the NAIC’s efforts to stay abreast of technological advancements help create a regulatory environment that supports responsible innovation within the insurance sector, which is crucial because the insurtech space attracted $16.5 billion in investments over the past decade [[1]].
The NAIC ensures that insurance companies, whether customary or tech-driven, operate soundly and ethically. This oversight is essential for fostering consumer trust and promoting a healthy, competitive industry. The NAIC also provides a glossary of insurance terms [[2]]for clarity.
Looking Ahead
As Insurtech continues to evolve,so to will the NAIC’s role. The organization will likely remain a central figure in balancing innovation with consumer protection, adapting regulations to keep pace with new technologies, and ensuring that the insurance industry is both robust and reliable. Modular Solutions, by understanding and aligning with these regulatory frameworks, can better position itself for long-term success. This is another reason why venture capital firms like Tailwind Ventures are attracted to the Insurtech space.
The NAIC’s initiatives and ongoing efforts are crucial not onyl for regulating the industry but also for setting standards and ensuring that consumers are fully protected in this evolving landscape.
Frequently Asked Questions
What exactly does the NAIC do?
The NAIC provides expertise,data,and analysis to insurance commissioners to regulate the insurance industry effectively and protect consumers.
How does the NAIC affect Insurtech companies?
The NAIC provides guidelines that Insurtech companies must follow. This can streamline market entry and support responsible innovation.
Why is the NAIC important for consumers?
The NAIC safeguards consumers by promoting fair practices and financial stability within the insurance industry.
Does the NAIC create laws?
The NAIC develops model laws and regulations. States can then adopt these as a template.
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