$70m has been added to the Hippo home insurance funding, thanks to Series C funding led by Felicis Ventures and Lennar Corporation.
Insurtech Hippo home insurance funding raised $109m so far. Previously, it had received $25m of Series B funding from Comcast Ventures and Fifth Wall.
Founded in 2015, Hippo states its insurance policy sales have grown by 30% month-over-month since January 2018. Furthermore, the service only launched in 2017. In addition, it has expanded into 11 new states this year alone covering more than $25bn in property value.
Utilising a data approach, Hippo states it can find a plan for home and condo owners in 60 seconds and pay up to 25% less in premiums.
Felicis managing director Victoria Treyger will join Hippo’s board as part of the move.
She said: “Hippo has set the bar for the future of insurance with its fully automated, proprietary policy management and proactive underwriting. The company leverages thousands of data points to underwrite customers in minutes and proactively monitors and alerts homeowners when key repairs or weather protection is needed to safeguard their most important asset.
“Insurance is in the early stages of undergoing the dramatic transformation of customer experience and improved risk management enabled by access to real time data. We see Hippo’s current growth rate and powerful automated policy management system as the foundation to driving this transformation.”
Insurtech funding across the board
According to Pitchbook, insurtech start-ups have raised nearly $6bn in venture capital funding since 2012. In addition, in 2018 alone, 94 deals have brought in $1.8bn.
Furthermore, research from Juniper believes that insurtech is a worthy investment. Insurance premiums generated by emerging insurtech firms will exceed $400bn by 2023. This is also a rise from the predicted $187bn earned in 2018.
However, the main trend will be money saving from utilising AI. The introduction of AI in the claims process is predicted to give massive savings. Juniper forecasts that across property, health, life and motor insurance, the annual cost savings will exceed $1.2bn by 2023, a five-fold increase over 2018.
To see more insurtech start-ups making waves in the sector, click here.