Insurate seeks to improve workers’ comp insurance
HSCM Ventures is the lead investor in a $4.5-million seed round by Insurate, the data science-based underwriter.
Insurate said that it provides fair and transparent workers' compensation solutions to high-hazard small/mid-market companies.
HSCM Ventures is the venture capital arm of Hudson Structured Capital Management Ltd, doing its re/insurance business as HSCM Bermuda.
Joining the round, Insurate said, are Foundation Capital, Revolution’s Rise of the Rest Seed Fund, Clocktower Technology Ventures, Sure Ventures and several angel investors, including independent agents and buyers of work comp.
Insurate said that its back-tested Safe-Tier Index uses proprietary data to identify safe businesses and help in pricing insurance.
The company said that its solutions are offered in partnership with Key Risk (a Berkley company), Encova and several additional leading work-comp insurers.
Insurate is currently in market, and average policy savings to date have been 24 per cent without applying maximum allowable credits, it said.
Joe McIlhon, CEO of Insurate, said: "Many small industrial businesses take safety seriously, but they are penalised up to 95 per cent in the pricing of work comp based on perceptions that their work is dangerous.
"We are bringing data intelligence to discern safe from unsafe, which we combine with human intelligence, to bring fair pricing to safety-conscious industrial companies in the $22 billion high-risk segment of the statutory work comp market."
Adrian Jones, partner at HSCM Ventures, who joins Insurate’s board of directors, said: “The Insurate team is reimagining a large but difficult segment of workers’ compensation using proprietary data and marketing channels.
“Workers’ compensation insurance is often priced with backwards-looking experience modifiers, which are not statistically credible for companies with few employees in hazardous segments.
“Insurate has built partnerships with large insurers, data sources and marketing channels to benefit businesses that take worker safety seriously.”