The venture-backed insurance world has a lot more potential than it seems, it has a lot more to offer than the Lemonades and MetroMiles of the world. There is enough space in the industry for startups to shuffle things up. One such Cambridge-based company, Insurify, came out today with the latest venture round that greatly amplifies its capital base.
The startup, which had managed to raise a small amount of $6.6 million in two rounds before its newest investment, has bagged in $23 million in a Series A funding led by VIOLA FinTech along with MTECH Capital. Its previous investors Nationwide and MassMutual Ventures also took part in the new investment.
TechCrunch reported that it had a word with Snejina Zacharia, CEO, and founder of Insurify, to get understand the new round.
Zacharia, a former employee of Gartner, thought about the idea for Insurify after an accident she had faced years ago. Following an unpleasant experience working with the insurance industry after the fact, she found out that consumers “have very, very little idea of how much coverage they need,” and that insurance providers were “really struggling to access digital consumers because they have very poor UIs, and their APIs were not up to date.”
This is where Insurify arrives and bridges that gap. It is working on “automation behind insurance,” Insurify wishes to support people finding the coverage that they require, online and that too at a fair price; it has proven to be a good business for the startup, the company generates revenue when consumers buy new insurance using its tool.
According to Zacharia, Insurify works as a licensed agent to help consumers find various categories of insurance that are suitable for them.
However, it’s more than a mere middle person. The startup wants to strengthen the digitization process of insurance purchase. Today, Insurify executes 65% of its new policies online and offers pre-loaded information to carriers when it passes a consumer over to their side of things.
Insurify is also creating its technology products that exist a little past insurance, including a “wallet” that allows users to manage multiple policies in one place.
New raised Capital
Zacharia answering a question about the latest raised capital said, after doing “a lot with almost nothing,” her startup is ready to speed up its go-to-market motion.
Practically, the latest capital will support Insurify in “horizontal expansion,” such as “launching new verticals” that will consist of home, rental, and other types of insurance, she said. Furthermore, the Series A will also be utilized to boost the startup’s marketing arm, which according to Zacharia is run like a “hedge fund.” Marketing efforts of Insurify are “automated through an artificial intelligence model,” she said, which approximates “the value of every click” using a set of algorithms that it tweaks regularly.
It will be interesting to watch what will happen at the intersection point of new capital, an operating marketing engine and an increasing set of products. Supposedly Insurify can flourish a lot from that combination of factors.
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