SiriusPoint invests in partner MGA
Bermudian-based global insurer and reinsurer SiriusPoint Ltd has invested in Honeycomb, a commercial real estate insurance company that uses technology to help owners of multifamily properties find better coverage at a lower price.
The company said it will be the US MGA’s lead underwriting capacity provider.
This investment and provision of capacity continues SiriusPoint’s drive to invest in and partner with innovative MGAs and insurtech companies, it said.
Prashanth Gangu, chief operating officer and president of insurance and services at SiriusPoint, said: “Honeycomb is an excellent fit for SiriusPoint’s growing partnership portfolio.
“The Honeycomb team are taking a disruptive and entrepreneurial approach to addressing customer needs in multifamily property insurance — entering a ‘no-man’s land’ for the traditional insurance industry.
“This is a market that is currently underserved. Commercial multifamily properties are places where many people live, work and visit and have specific insurance needs for their owners — it’s seen as too complex a risk by some insurers, or too niche by others — leaving a gap in insurance that needs to be filled.”
Honeycomb, which provides insurance coverage to both apartment building owners and condominium associations, is an all-digital, AI-enabled, end-to-end insurance platform.
It allows multifamily property owners to use their mobile phone to conduct a virtual property inspection by taking photos of assigned internal and external features of the property and receive an immediate, bindable quote.
With this new round, Honeycomb has to date raised $19 million. The additional funds raised will be used to further deepen its technological moat and expand into multiple additional states in the US.
Itai Ben-Zaken, Honeycomb’s co-founder and CEO, said: "We are super excited to further enhance our great partnership with SiriusPoint who have been an amazing partner for us throughout our journey and supported us from Day 1.
“We appreciate the strong vote of confidence from SiriusPoint and look forward to continuing to push the boundaries of what’s possible in real estate insurance together.”
Patrick Charles, head of Americas property and casualty insurance at SiriusPoint, added: “It is good news for both the consumer and the insurance company.
“The speed and convenience of the underwriting process is the main hook for customers and the virtual inspection process should significantly reduce underwriting expenses.
“The collected data also allows Honeycomb to differentiate properties, reward better-quality risks with unique discounts, and continuously improve its underwriting engine.”
Honeycomb, which describes itself as “people-focused, tech-driven”, said it combines the knowledge of industry veterans with artificial intelligence and big data.