Insurify, a ‘virtual insurance agent’, raises $ 100 million Series B – TechCrunch

How many of us haven’t changed insurance companies because we don’t want to deal with the hassle of comparing prices?

A lot, I bet.

Today, Insure, a startup that wants to help people make it easier to obtain better rates on home, auto and life insurance, announced that it closed $ 100 million in a Series B “oversubscribed” financing round led by Motive Partners.

Existing backers Viola FinTech, MassMutual Ventures, Nationwide, Hearst Ventures and Moneta VC also put money into the round, as well as new investors Viola Growth and Fort Ross Ventures. With the new funding, Cambridge, Massachusetts-based Insurify has raised a total of $ 128 million since its inception in 2013. The company declined to disclose the valuation at which the money was raised.

Since we last covered Insurify, the startup has seen impressive growth. For example, it has seen its new and recurring revenue increase by “6x” since it closed its Series A financing in the fourth quarter of 2019. For the last three years, Insurify has achieved a CAGR (compound annual growth rate) of 151%. , according to co-founder and CEO Snejina Zacharia. It has also seen steady “2.5x” revenue growth year-over-year, he said.

Insurify has created a machine learning-based virtual insurance agent that integrates with more than 100 carriers to digitize and personalize the insurance shopping experience. There are others in the insurtech space, but none that we know of that currently address the home, the car. and life insurance. For example, Jerry, who has raised capital twice this year, focuses primarily on auto insurance, although it does have a product for the home. The zebra, which turned into a unicorn this year, It started as a site for people looking for car insurance through its real-time quote comparison tool. Over time, it has also evolved to offer homeowners insurance with the goal of eventually diversifying into life and renters insurance. But it is also mainly focused on the automobile.

Zacharia said that since Insurify’s Series A financing, it has expanded its home insurance market, deepened its carrier integrations to provide users with a “Instant” shopping experience and launched its first two integrated insurance products through partnerships with Toyota Insurance Management Solutions and Nationwide (the latter of which also participated in the Series B funding round).

Image credits: Insure

Last year, when ShyScanner had to lay off staff, Insurify acquired much of its engineering team and established an office in Sofia, Bulgaria.

Zacharia, a former Gartner executive, was inspired to start the company after being involved in a minor car accident while earning her MBA from MIT. The accident caused her insurance premium to increase, and Zacharia was frustrated by the “complex and cumbersome” experience of purchasing auto insurance. He partnered with CTO Tod Kiryazov to build Insurify, which the couple describe as a virtual insurance agent offering real-time quotes.

“We decided to create the most trusted virtual insurance agent in the industry that allows clients to easily search, compare and buy fully digitally, directly from their mobile phone or desktop computer, and really get a very smart and personalized experience based on their preferences, ”Zacharia told TechCrunch. “We take advantage of artificial intelligence to be able to make recommendations on both coverage and operator selection.”

In particular, Insurify is also a fully licensed agent that handles the fulfillment and service of policies. Since the company works primarily as an insurance agent, it is paid a new and renewed commission. So while it’s not a SaaS business, its built-in insurance offerings have SaaS-like monetization.

“Our goal is to provide an end-consumer experience that allows you to service and manage all your policies in one place, digitally,” said Zacharia. “We believe that the data recommendations that the platform provides can really remove most of the friction that currently exists in the shopping experience.”

Insurify plans to use its fresh capital to continue expanding its operations and accelerate its growth plans. He also naturally wants to join their team of 125 people.

“We want to incorporate our API integrations so that customers can receive direct quotes in real time with better personalization and a more personalized experience,” said Kiryazov. “We also want to identify more integrated insurance opportunities and expand the functionality of the product.”

The company also wants to expand into other verticals like pet insurance, for example.

Insurify intends to use the money in part to create brand awareness, potentially through television advertising.

“Almost half of our revenue comes from self-directed traffic,” Zacharia said. “So we want to explore more inorganic growth.”

James “Jim” O’Neill, Founding Partner of Motive Partners and Partner Andy Rear point out that oOnline shopping now accounts for nearly all of the growth in auto insurance in the US.

“The lesson from other markets that have gone through this transition is that customers prefer the option, presented as a simple menu of products and prices from different insurers, and a simple online purchasing process,” they wrote by email. “The US auto market is huge – even a slow transition to the internet means a great opportunity for Insurify.”

In conducting their due diligence, the couple said they were impressed with the way the startup is building a business model “that works for clients, insurers and white label partners.”

Harel Beit-On, Founder and General Partner of Viola Growth, believes that the quantum leap in e-commerce due to COVID-19 will completely transform the shopping experience in almost every industry, including insurance.

“It’s time to bring the frictionless shopping experience customers have come to expect into the insurance space as well,” he said. “Following our fintech fund’s recent investment in the company, we see Insurify’s immense growth, excellent execution with customer acquisition, and building a brand that consumers trust.”

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