The next wave of servicing regulation is coming – Are you ready?

Join this webinar to learn what servicers need to know about recent and upcoming servicing compliance regulations and strategies experts are implementing to prepare for servicing regulatory audits.

Inside Look: RealTrends 2021 Brokerage Compensation Study

Steve Murray, senior advisor to RealTrends, gives an exclusive first look at the 2021 RealTrends Brokerage Compensation Report.

Logan Mohtashami on trends in forbearance exits

In this episode of HousingWire Daily, Logan Mohtashami discusses several hot topics in the housing market, including recent trends in forbearance exits and future homebuyer demand in the midst of inventory shortages.

How lenders can prepare for increasing regulatory pressures

As compliance becomes an increased focal point for mortgage lenders and investors, staying ahead of state and federal regulations can be the difference between a flourishing business and one mired in fines.

Fintech

Home insurance tech startup Hippo raises $150 million at $1.5 billion valuation

Hippo says it has grown its total written premiums by 140% year over year to $270 million in the past 12 months

This article was written for FinLedger, HW Media’s new fintech-focused news brand designed specifically for financial services professionals in banking, insurance and real estate. Stay tuned for updates.

Hippo, an insurtech startup focused on providing home insurance digitally, announced this morning a massive $150 million Series E round at a post-money valuation of $1.5 billion.

With the latest round, the Palo Alto-based company has now raised a total of $359 million since its 2015 inception. Hippo reached unicorn status ($1 billion valuation) in July 2019 with a $100 million Series D fundraise.

The latest financing was oversubscribed and included participation from new investors FinTLV, Ribbit Capital, Dragoneer and Innovius Capital, as well as “significant” participation from existing backers, according to the company.

In the past 12 months, Hippo said it has grown its total written premiums by 140% year over year to $270 million. CEO and Co-founder Assaf Wand told Bloomberg that the company is currently on track to reach over $100 million in revenue in the next year. 

Hippo began selling its policies to homeowners in 2017. It initially rolled out in California and now claims to be available to more than 70% of U.S. homeowners across 29 states. The company has since expanded its product portfolio with products for landlords, available in nearly 15 states, and a product for new construction, which is available in 12 states. Today, it has “hundreds of thousands of customers” across the U.S.

The company said it experienced a 60% year-over-year increase in sales in the second quarter “as homeowners shelter in place and find new ways to use their properties.” Over the past five months, its new home maintenance group, Hippo Home Care, has provided free virtual tele-maintenance services.

The startup said it plans to use its new capital mainly to accelerate its expansion, with the goal of reaching 95% of the U.S. homeowner population in the next 12 months. That will include “aggressive” hiring, investing in its technology and to support Hippo’s proposed acquisition, pending regulatory approval, of Spinnaker Insurance Company. 

Besides its Palo Alto headquarters, Hippo also has offices in Austin and Dallas. It currently has 280 employees and has plans to add 100 more in 2020 with plans to build a new campus in Austin, Texas, according to Wand. Construction of the facility, which will hold up to 310 Hippo employees when it opens next year, is underway.

Hippo differentiates itself from other home insurers, it says, by providing “more accurate and affordable coverage by using technology and data integrations to develop a unique profile of a customer’s property during the onboarding process.” The company actively reviews changes to a customer’s property over time, using thermal and satellite imagery and layers in AI, machine learning and public records.

Hippo also has a smart home program, which offers eligible customers complimentary smart home devices at sign-up. The company says it has delivered more than 400,000 devices to date and helps alert homeowners to potential issues such as water leaks. When things do go wrong, Hippo says its claim process “leverages highly vetted contractors.”

Gil Arazi, founder and managing partner of insurtech-focused VC fund FinTLV, believes Hippo has transformed the home insurance experience with its proprietary underwriting technology and “delightfully refreshing customer experience.”

“The value Hippo provides for consumers and the strides it has made towards the larger progression of the P&C insurance sector makes it the most compelling technology insurance company of its time,” he said in a written statement.

Hippo has been a HousingWire Tech100 winner from 2018 to 2020. We covered previous funding rounds here and here.

Hippo allows homeowners to get a quote and purchase home insurance online in 60 seconds or less, save up to 25% compared to traditional insurers, and obtain “smarter coverage for modern households,” according to the company.

It also offers direct integrations into loan origination systems and point of sale systems to allow borrowers to obtain homeowners insurance as part of the mortgage process.

“We work with various partners to capture homeowners’ attention along their home purchase journey – including builders, real estate agents, mortgage lenders – to integrate the Hippo Home Insurance offer when buyers need it most, during closing,” Wand told HousingWire. “Through these partnerships, we’ve created dedicated product experiences to integrate Hippo home insurance at the time of purchasing a home.”

No doubt the insurtech space is a hot one. Earlier this month, digital insurance startup Lemonade went public, with shares soaring more than 136% in the company’s market debut.

Lemonade is licensed as a property and casualty insurance carrier, and began offering homeowners and renters’ insurance in New York in late 2016. That offering is now available for most of the U.S. population. The company says it powers its offerings with artificial intelligence and “behavioral economics.”

Lemonade claims it’s built a system that “collects 100x more data than traditional carriers,” giving it the ability to generate predictive data that it says can help improve underwriting and pricing.

Are you a financial services professional hungry for better fintech news and info? HW Media is proud to introduce FinLedger, a fintech media brand that will cover the critical news impacting financial services professionals — from SaaS to big data, and cybersecurity to regtech. Want to be notified when we launch? Enter your email here and follow us on Twitter.

Leave a comment

Most Popular Articles

Treasury removes restrictions on investment properties

The Treasury Department and FHFA announced Tuesday that they are suspending certain requirements that were added in January to the Preferred Stock Purchase Agreements (PSPAs) between Treasury and Fannie Mae and Freddie Mac.

Sep 14, 2021 By

Latest Articles

Natural disasters and forbearance: What borrowers and mortgage servicers need to know

The United States is grappling with a sharp rise in natural disasters, including wildfires, an active hurricane season, floods, tornadoes and mudslides. The mortgage industry needs to be proactive in examining programs to help borrowers recover.

Sep 17, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please