California-based insurtech company Hippo has announced today it secured $25 million in Series B funding, led by Comcast Ventures and Fifth Wall and joined by other top fintech investors. Founded by serial entrepreneurs Assaf Wand and Eyal Navon, Hippo is aiming at reimagining homeowners insurance with a customer-centric model by leveraging big data, like municipal building records, and innovative technology, such as satellite imagery and smart home devices, to streamline the quote and onboarding experience. Assaf Wand, CEO and co-founder of Hippo “Homeowners insurance is an antiquated industry that has lost its way,” said Assaf Wand, Hippo’s CEO. “Up to 65% of all homeowner claims result from catastrophic events. Whether it’s damage from a hurricane or wildfire, the last thing homeowners should have to deal with is a complicated battle with their insurance carrier. We get our customers what they need immediately, so the claims process doesn’t become another crisis they have to deal with.” Insurtech is one of the hottest areas of fintech right now, and Hippo’s announcement is coming just a few weeks after SoftBank announced its $120 million investment in competitor Lemonade and a few months after Jetty announced its $11.5 million series A. According to Wand, Hippo stands out as it is focused on homeowners and not renters. "Lemonade and Jetty have developed business practices and customer service around renters insurance, which is, at its core, an entirely different product. Renters are looking for replacement coverage on their individual assets, plain and simple. Homeowners invest their life savings into their homes - it’s where they store the things they love most and live life with their families. It’s a more complex situation that requires a comprehensive product,” said Wand. Since its launch in California in April 2017, the company has expanded to Arizona and Texas, reporting double-digit growth month-over-month in each market. Hippo will continue expanding its reach to additional states throughout the year and is aiming to reach 60% of the U.S. population by the end of 2018. According to Wand, Hippo’s tech team mastered the art of turning each new states regulatory requirements, bringing them into a simplified backend platform and testing them to ensure for efficient, flawless launches in each new state in as little as two weeks, whereas it takes traditional insurers nearly 12-months to launch in a new state. Besides launching in three states, the company reports it improved its 60-second quote process, based on direct feedback from customers and new API data integrations, so very little of the application work falls to the client. Additionally, it developed a 24/7 claims concierge team that manages all claims from start to finish with proactive outreach and upfront safety care (think getting your family into a hotel immediately after a house fire instead of talking you through your claims numbers), anticipating clients’ needs throughout the claims process. 2017 was an intense year for U.S. homeowners, with what MunichRe reports as the year with the highest levels of insured expenses due to catastrophic events. “I’m happy to report that we were able to support several families in the Northern and Southern California wildfires this year, first contacting them before they needed to file a claim to offer assistance with finding nearby housing during evacuations, and later helping them work through clean up and claims filings,” said Wand. “While we can’t share the details of claims payments, we were on solid footing at each turn. With partners like Topa and Spinnaker supporting underwriting and the world’s largest reinsurers, with more than $200 billion in assets backing up claims, our clients’ home are always protected,” continued Wand. Brendan Wallace Fifth Wall Ventures This financing round Hippo was fortunate to bring Fifth Wall Ventures, the largest venture capital firm focused on technology solutions for the built world as a strategic investor. “Existing home insurance offerings are incredibly painful, slow, and outdated in their coverage, delivery and customer service. U.S. homebuilders have recognized that their younger consumers are demanding more. Prospective homebuyers, especially Millennials, demand a digitally native, consumer-focused, data-driven home insurance product. Fifth Wall will help Hippo structure partnerships with U.S. homebuilders to help these homebuilders better serve their customers,” said Brendan Wallace, cofounder and managing partner at Fifth Wall Ventures.
Californian insurtech Hippo has raised $25m in a series B funding round led by Fifth Wall and Comcast Ventures. Hippo offers a streamlined, customer-centric platform aimed at homeowners, rather than rental tenants, with features including a 24/7 claims concierge team and a 60-second quote process. The company has a presence in Texas and Arizona, and CEO Assaf Wand aims to reach 60% of the US population by the end of this year. Hippo's series B follows other substantial investments in insurtech, such as SoftBank leading a $120m investment in Lemonade, and Jetty raising $11.5m in a series A round.