Kin Insurances secures $35mn to disrupt home insurance
Founded in 2016 by Sean Harper (CEO), Lucas Ward (President and CTO) and Stephen Wooten (Director of Engineering, and headquartered in Chicago, the company strives to make home coverage affordable via a data-driven, technology-based approach prizing constant innovation and customer-centricity above all else.
Satisfied with the results of the Series B round, Dan Rosen, Founder or Commerce Ventures stated, "As early investors in Kin, we're excited to see how fast the company has grown from a startup into a market-leader for directly marketed homeowner’s insurance.
"While many insurers spend much of their gross margin paying third-party agents, Kin has eliminated those costs, thus making the experience both simpler and more affordable for customers.”
Creating meaningful change
A reciprocal exchange wherein profits from the underwriting process are shared with customers, KIN is representative of the thoroughly different approach being spearheaded by InsurTech pioneers: actively making people’s lives better through insurance-based services.
“We believe in creating meaningful change for homeowners who need our solution the most. Since we established our carrier (KIN) last summer, we have been able to innovate much faster because we depend less on legacy insurance infrastructure,” said Harper.
Indeed, this shift away from outdated technology and impersonal customer experiences signifies what is truly disruptive about Kin itself.
While most home insurance providers would use ZIP codes to generate policy premium costs, Kin opts to use more precise data to mitigate against factors which would otherwise make home cover prohibitively expensive, such as in natural disaster prone states like California and Florida.
Global investment in insurtech reaches all-time high
Global investment in the InsurTech sector reached an emphatic record during H1, 2021, as half-year funding of US$7.4 billion exceeded full-year investment in 2020, and in every other year, according to the new Quarterly InsurTech Briefing from Willis Towers Watson.
It was found that the latest quarter saw 162 deals yield more than $4,824 million in investment, a 210% increase over Q2, 2020. The enormous quarterly total, itself more than any annual total before 2019, was driven largely by 15 mega-rounds of $100 million or more. Collectively, these deals reached $3.3 billion, or two-thirds of total funding during the quarter. The money was raised predominantly by later-stage players seeking expansion.
A need for the insurance community to reflect digital changes
Series B and C fundraisings drove a large number of deals in the second quarter, but the number of early-stage deals also increased. They were up by more than 9% from the previous quarter, and 200% from pandemic-stricken Q2, 2020. As a percentage of overall deals, early-stage activity held roughly steady, at 57%.
InsurTechs focused on distribution accounted for 55% of start-up deals, and for 10 of the 15 mega-rounds. Most of the distribution InsurTechs target reduced dependence on agent channels. Of all Q2 deals, 73% were for P&C-related InsurTechs, while 43 companies raised funds for L&H technology. Funds were raised by companies from 35 countries, including new entrants Botswana, Mali, Romania, Saudi Arabia, and Turkey.
Dr. Andrew Johnston, global head of InsurTech at Willis Re, said: “As technology changes our lives, society will demand an insurance community that reflects and supports our changing, digitally empowered behaviours. Consumers and businesses increasingly expect insurance to be delivered when and how they want it, and risk carriers that fail to respond will fall away over time. To embrace technology is a minimum survival condition. Those that use it to redefine service in the insurance world will thrive. That means a positive future for InsurTechs that bring a truly differentiated business approach to our industry. Some of them will create untold long-term opportunities for themselves and the insurance sector.”