Branch insuranceA startup that offers a combination of home and car insurance has raised $ 50 million in a Series B funding round led by Anthemis Group.
Acrew, Cherry Creek Holdings, existing backers Greycroft, HSCM Bermuda, American Family Ventures, SignalFire, SCOR P & C Ventures, Foundation Capital and Tower IV also participated in the round. With this latest funding, the Columbus, Ohio branch has raised a total of $ 82.5 million since its inception in 2017.
With so many players in the insurance tech space, it can be difficult to distinguish between different services. Branch claims that it is unique in that it can provide customers with an “immediate insurance offer” for a set of home and car insurance within “a few seconds” with just a few pieces of information.
Co-founder and CEO Steve Lekas began his career at Allstate in underwriting, technology and product management. He then launched Esurance’s first online home insurance business.
But deep down in his mind, Lekas wanted to find a way to make insurance more accessible to more people. He teamed up with Joe Emison and the branch was born.
“There are structural flaws in the industry that are detrimental to consumers. Complex insurance policies, rising costs and marketing wars all lead to a vicious cycle, resulting in higher premiums,” Lekas said. Mr. says. “We are a comprehensive insurance company that changes people’s thinking about home and car insurance.”
Branch, he claims, is the only insurer that can combine insurance via APIs and the only insurer that can bundle car and home insurance in one transaction.
Another thing that makes Branch unique, according to Lekas, is that it can be incorporated into the purchasing experience. In other words, the company has partnered with companies such as Rocket Mortgage and ADT to integrate insurance into their products at the point of sale. For example, when a person closes a house, they have the option of purchasing branch insurance at the same time.
“Every home and car insurance starts with a separate transaction,” says Lekas. “Insurance is a product that exists only for other transactions. It has never been possible to incorporate it into a primary purchase.”
This distribution model means that Branch spends less effort to acquire customers, and therefore claims to be able to offer premiums at a lower price than its competitors.
“Consumers can buy home and car insurance, or home insurance with just two clicks. We will cancel the old insurance on the deadline and send all the data to the existing mortgage. “, Says Lekas.
Branch also offers consumer insurance through distributors.
The company plans to use some of the new funding to accelerate its rollout across the United States and to enter into further partnerships that will allow it to incorporate its products. Currently, the branch has more than 30 partnerships of various sizes, which are “added weekly” as they begin in more states.
“It’s really hard to move quickly,” Lekas said. “This system is designed to move slowly. All state regulators must approve individually and independently with their own rules.”
Lekas predicts that Branch will be available in more than 80% of the United States by the end of the year.
Branch has gained momentum since the $ 24 million Series A in July 2020.
Specifically, the startup achieved 435% growth in partner channels, 660% growth in active insurance policies, and 734% growth in active premiums, less than a year after the last hike. It states that it did.
Anthemis Group partner Ruth Foxe Blader states that Branch is the first investment from a new growth fund.
Blader says he has invested in insurance innovation over the last decade and is particularly attracted to the insurance tech business, which represents three things: Significant product innovation and significant cultural innovation.
“Branches can easily check those boxes,” Blder told TechCrunch. “Branch’s products are both built-in and bundled, making them cheaper, easier to buy, and less likely to leave a significant protection gap for our customers.”
She added that the startup effectively combines data science and technology to create “unique automated product bundles.”
Branch describes the structure as “built to save money” and states that it has created a program that rewards members for discounts on connected homes, referrals, and safe driving practices.
The branch also established an NPO corporation and Safety nestTo help those who are not insured or are not insured.
Branch raises $50M to offer bundled auto & home insurance via an API – TechCrunch Source link Branch raises $50M to offer bundled auto & home insurance via an API – TechCrunch