HSCM Bermuda increases investment in Branch Insurance
HSCM Bermuda has increased its investment in Branch Insurance, which has closed a $50 million Series B fundraise to fuel its national and partner channel expansion.
Branch said the round was led by Anthemis Group with participation from Acrew, Cherry Creek Holdings, and existing investors Greycroft, HSCM Bermuda, American Family Ventures, SignalFire, SCOR P&C Ventures, Foundation Capital, and Tower IV.
The company said it has raised $82.5 million to date.
HSCM Bermuda is the reinsurance and ILS investment management business arm of Hudson Structured Capital Management Ltd, the asset manager with a focus on the re/insurance and transportation sectors.
Also this week, it was announced that the Bermudian-based outfit was among the companies that have contributed to a $100 million round of funding by Embroker, the digital business insurance platform.
Branch said it will use one of the largest insurtech Series B rounds in history to expand its "built-for-savings" home and auto coverage nationally.
The Columbus, Ohio-based company, a start-up, said it has pioneered instantly-bundled home and auto insurance.
By enabling consumers to get instant, online insurance prices using just a few pieces of information, Branch said it has made it quicker and easier than ever to buy insurance and has all but eliminated the antiquated insurance application and quote estimate.
Steve Lekas, co-founder and CEO of Branch, said: "The industry is structurally flawed and it harms consumers. Complicated policies, rising costs, and marketing warfare all contribute to a vicious cycle that results in overpriced insurance.
"Branch was built differently in order to break that cycle and introduce consumers to insurance that is simple to buy, offered in moments of convenience, and meaningfully less expensive."
Branch said it is focused on removing as much friction as possible from the insurance-buying process, enabling the company to partner across the mortgage, home building, auto, and home security industries and instantly embed Branch into the buying experience.
By integrating insurance at the point of sale of other products, Branch said it pays less than traditional insurers for customer acquisition and therefore offers a lower price.
The company said it has already inked deals with industry-leading names like Rocket Mortgage and ADT and, with this new funding, plans to accelerate its roll-out across the US to enable more national embedded partnerships.
Branch said it has also “created deep and innovative connected home discounts”, and has launched “unique programmes that leverage the power of community to make insurance even less expensive”.
It said members are rewarded for inviting trusted friends to join Branch, practicing safe driving behaviours, and pledging that their friends in the Branch community will not commit insurance fraud.
Branch also works alongside its non-profit entity, SafetyNest, to help those who are uninsured or underinsured.
The company said it believes it can create a more virtuous cycle in insurance: making insurance less expensive so that more people can become insured, helping everyone save money and be better protected.
The start-up has achieved 435 per cent growth in its partner channel, 660 per cent growth in active policies, and a 734 per cent increase in active premium less than one year after its $24 million Series A, the company said.
Branch said it is targeting the $700 billion property & casualty industry, with the goal of reaching 80 per cent of the US population by the end of 2021.
The company said it is underwritten by the Branch Insurance Exchange and General Security National Insurance Company and backed by SCOR SE, all A-rated insurance entities.