Hippo Insurance, a digital home insurance company, just raised $70 million in growth funding, bringing the company's total capital raised to $109 million.
The California-based company, which launched in 2017, has managed to grow sales 30% month over month since the beginning of 2018. It has also expanded into 11 new states, covering more than $25 billion in total property value.
Hippo’s achievements caught the eye of some heavy hitters, as its recent round of funding was led by investment firm Felicis Ventures and homebuilding company Lennar Corporation.
“Our heavy focus on customer experience for every client, from first-time homeowners to home insurance experts, has been one of the keys to our success,” Hippo Co-Founder and CEO Assaf Wand said. “From a client’s first interaction with us, to our regular coverage tracking, we always keep their needs in mind. We’re eager to expand our footprint, launch new products and bring our incredible customer service to clients nationwide.”
According to a recent report, the insurtech industry is expected to grow from 4% of the current insurance market to more than 10% by 2023, totaling more than $400 billion in premiums.
“Insurance is in the early stages of undergoing the dramatic transformation of customer experience and improved risk management enabled by access to real time data,” said Felicis Ventures Managing Director Victoria Treyger, who is also on Hippo's board of directors. “We see Hippo’s current growth rate and powerful automated policy management system as the foundation to driving this transformation.”
Hippo said its product is accessible to more than 50% of the U.S. homeowner population, and it expects to be available to more than 60% by the end of 2018.
Senior Lennar Executive Eric Feder, who is expected to join Hippo’s board of directors, said Hippo has captured the direct-to-consumer home insurance market with its efficient product, modern coverage and customer friendly approach.
“This investment marks the beginning of our relationship with Hippo and reflects our enthusiasm for exploring opportunities to streamline and improve the insurance process for our homebuyers.”
Throughout this year, Lennar has invested heavily in the tech space, recently aiding Notarize in the securitization of $20 million in funding.
Fifth Wall, a follow-on investor in the round, facilitated the partnership between Hippo and Lennar, believing Hippo will utilize the funds to better improve the home buying process.
“Home buying is the engine of the American economy, but the process for acquiring homeowners insurance – a requirement for most homeowners – has been predominantly analog, arduous and inefficient,” Fifth Wall Co-Founder and Managing Partner Brendan Wallace said. “This game-changing partnership is a great example of how a real estate incumbent like Lennar can influence innovation cycles in the market – by integrating with a best-in-class startup to move the industry forward.”