California-based “insurtech” company Hippo just raised a brand spankin’ new round to — try not to choke on all the buzzwords — “[reimagine] homeowners insurance with a customer-centric model by leveraging big data.”
Essentially, they’re capitalizing on the inefficiencies of the current insurance model to simplify the claims process after a disaster — and VCs are lovin’ it.
It’s been a catastrophic year for homeowners
And a boon to companies like Hippo, whose snazzy website and simple user interface make it appealing to users trying to put a roof back over their heads after a record amount of insured losses from natural disasters in 2017.
According to CEO Assaf Wand, Hippo’s tech team has streamlined the regulatory process, allowing them to launch in new states in as little as 2 weeks, compared to the 12-month launch time of most traditional insurers (they’ve expanded into CA, AZ, TX, and PA since launching last April ).
Trendy apps ain’t where it’s at anymore
VCs aren’t just jumping on “sexy” startups lately — they’re going for new players that are shaking up the game in tried-and-true industries like agriculture, shipping and logistics, and, of course, insurance.
Case in point: Insurtech has grown from almost nonexistent in 2010 to 57 deals closed in the first half of 2017 alone, including high-dollar drops like Softbank’s $120m vote of confidence in rental and homeowners insurance startup Lemonade.
Get the 5-minute roundup you’ll actually read in your inbox
Business and tech news in 5 minutes or less