There has been so much money poured into insurance startups lately that it’s spawned its own category, “insurtech.” Investors see an opportunity to reduce inefficiencies and make customer-friendly products. They believe that more young people will buy insurance if it’s made more convenient.
Now the Mountain View, California-based team is raising $25 million. This brings Hippo’s total funding to $39 million since it was founded three years ago. Comcast Ventures and Fifth Wall are leading the Series B round.
“There’s a need to start bringing the focus on the customer,” said Assaf Wand, Hippo’s co-founder and CEO. He touts a fast-and-easy service that can get you signed up for insurance in just 60 seconds.
He says that Hippo can also cover a lot of home emergencies that standard insurance doesn’t cover, including problems stemmed from service lines or broken appliances. “We cover you for the stuff that we think you should be covered for,” said Wand.
Brendan Wallace, co-founder and managing partner at Fifth Wall said that he invested because “Hippo’s platform is significantly cheaper and streamlined compared to its traditional competitors.” He believes that “Hippo has everything in place to capitalize on the consumer shift to digital home insurance: superior technology, a highly qualified team, and distribution partnerships out of reach for competitors.”
Its policies are underwritten by many of the existing insurance giants. Hippo takes a commission on granted insurance plans.
The business is currently licensed for California, Arizona and Texas. Hippo will be using the new funding round to expand.
Prior investors include Horizons Ventures and GGV Capital.
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