Toronto-based insurtech BOXX Insurance has raised $US14.4 million ($20.2 million) in a funding round led by Zurich as the Swiss insurer builds its presence in the SME and retail cyber markets.

Zurich Global Ventures CEO Jack Howell says building cyber insurance solutions for small business and consumers is costly and requires deep technical expertise.

BOXX, which offers cyber insurance and risk management services, addresses these challenges “unambiguously, affordably, and with a genuine understanding of what customers and their risk advisers need”.

“We’ve seen how difficult it is,” Mr Howell said. “It’s impressive to see the simplicity in how BOXX is tackling such a complex global challenge.

“Helping customers with innovative digital solutions and embedding them into the customer journey is critical.”

Zurich Global Ventures specialises in cyber, digital health, employee benefits, travel via Cover-More, and consumer electronics protection.

Zurich also participated in a previous BOXX funding round and the pair collaborated in 2021.