Digital insurance coverage supplier Honeycomb introduced it has raised $15.4 million in a Sequence A funding and plans to broaden into extra states.
The reinsurance-backed managing common agent (MGA) touts a expertise stack for multi-family properties that streamlines the insurance coverage shopping for course of for landlords and apartment house owners associations. Honeycomb claims that its AI-driven expertise is the primary to allow the supply of bespoke, “right-priced” insurance coverage coverages — immediately.
The corporate, which solely started writing U.S. insurance policies in June of 2021, now operates in 4 states — Illinois, Arizona, Michigan and Ohio. It has plans this 12 months to launch in 10 extra states overlaying 60% of the nation.
Honeycomb mentioned it expects to insure greater than $1 billion of actual property property by the tip of this primary quarter.
“Industrial traces insurance coverage and particularly insurance coverage for multi-family properties is ripe for disruption given the sheer complexity entailed in underwriting this class of danger, its handbook processing legacy, and the absence of a frontrunner out there,” mentioned Honeycomb’s co-founder and CEO Itai Ben-Zaken.
Ben-Zaken mentioned Honeycomb deploys algorithms that “parse deep, first-party, location-specific information” to extra precisely consider danger and in consequence, it might extra shortly underwrite whereas holding prices down.
Honeycomb permits for custom-made insurance policies that embody providing protection for properties with Airbnb leases, enhanced ordinance and regulation protection, distinct enterprise earnings and additional expense coverages, and a brand new strategy to deductibles in risk-prone areas.
Ibex Buyers led the funding spherical. SiriusPoint Ltd, a world insurer and reinsurer, and Honeycomb’s personal lead underwriting capability supplier, may even take part on this funding spherical as will current traders Phoenix Insurance coverage, Distributed Ventures (FKA NFP Ventures), IT-Farm, and Positive Ventures.
With this new spherical, Honeycomb has up to now raised $19 million.
The corporate sells its insurance policies straight by way of its personal platform and thru insurance coverage brokers.
Honeycomb has workplaces in Denver, San Francisco and Tel Aviv.
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