Home Insurance Leader Has Raised $209 Million in Total Funding to Fuel Expansion
PALO ALTO, Calif.–(BUSINESS WIRE)–#fundingnews—Hippo, the high growth insurtech company that’s transforming the home insurance market, today announced a $100 million Series D funding round led by Bond, the global technology investment firm founded by Mary Meeker, Mood Rowghani, Noah Knauf and Juliet de Baubigny. Since its launch in 2017, Hippo’s modern take on home insurance, from coverage and pricing to claims and service, has evolved into a new kind of insurance that proactively identifies and resolves ongoing risks for today’s consumers.
The financing will be used to fuel the expansion of Hippo’s geographic footprint to more than 80 percent of the U.S. homeowner population by the end of the year, deepen Hippo’s direct-to-consumer product portfolio, grow Hippo’s distribution network of industry partners, and further cement Hippo as the leading brand in modern home insurance. This investment round builds on a record twelve months for Hippo, which has seen premiums grow more than 10 times and places them among the fastest growing companies in the Insurance Technology sector.
“We launched Hippo to transform the outdated and often frustrating relationship people have with their home insurance provider into one that’s approachable, modern, and always adding value,” said Assaf Wand, co-founder and CEO of Hippo. “Not only are more than 60% of US homeowners underinsured but traditional insurance only interacts with you when you file a claim. We’re providing more comprehensive policies and helping customers prevent claims from ever happening through protective services, programs and alerts that safeguard their homes, a family’s largest personal asset.”
Hippo is building faster, more accurate and more affordable homeowners insurance for today’s customers. The company’s data-driven pricing and real-time underwriting analyzes trusted public data sets, from municipal building records to satellite imagery of physical property characteristics, to develop a more accurate profile of a customer’s property, resulting in qualified customers receiving a comprehensive, tailored and accurate quote in under 60 seconds, and reduced premium costs of up to 25 percent.
Hippo also provides customers with complimentary smart home devices, to protect homeowners against water leaks, fire damage and break-ins. These devices have been well-received by clients, with more than 70% installation rate to date. Hippo’s customer-centric and preventative approach have earned an average Net Promoter Score of 76, nearly three times the industry average.
“Hippo has emerged as one of the highest growth companies we’ve seen among its insurance peers and more broadly in FinTech,” said Noah Knauf, General Partner at Bond. “The Hippo team is world-class and we’re excited to partner with them as they build the next generation insurance company.” As part of the investment, Mr. Knauf will join Hippo’s Board of Directors.
In addition to Hippo’s direct-to-consumer and insurance industry partners, Hippo has built an extensive partner distribution network, including homebuilders like Lennar, lenders like Better.com, homeowner insurers like First American Property & Casualty Insurance Company and key brands within the Connected Home like Xfinity. As part of Hippo’s partnerships with homebuilders, some newly constructed homes will have builder-installed smart sensors that help reduce the ongoing maintenance costs, which can help save customers more on their insurance premiums over time.
Hippo’s Series D investment brings the company’s total funding raised to $209 million with participation in this round from Comcast Ventures, Felicis Ventures, Fifth Wall, Hillhouse Capital, Horizons Ventures, ICONIQ Capital, Lennar Corporation, Michael Ovitz, Pipeline Capital, Propel Venture Partners, RPM Ventures, Standard Industries, and Zeev Ventures.
Hippo is on a mission to transform home insurance for the modern household. Among its many innovations, Hippo allows homeowners to get a quote and purchase home insurance online in 60 seconds or less, save up to 25 percent compared with traditional insurers, and obtain smarter coverage for modern households. This includes protection for possessions like appliances, consumer electronics and home offices. Founded in 2015 by Assaf Wand and Eyal Navon, Hippo made its debut in the insurance marketplace in April 2017, and has raised $209 million to reinvent home insurance. The company is headquartered in Palo Alto, California with offices in Dallas and Austin, TX the company’s insurance headquarters. For more information, visit http://www.myhippo.com.