Pie Insurance exceeds $100m in 3.5 years
The company, which specialises in small business employees comp insurance, has now cemented its position as the fastest-growing insurtech company in the market.
Its previous milestone occurred in May 2020, when the company raised $127m to create an affiliated entity, Pie Carrier Holdings. Pie’s aim has been to transform small business insurance into an automated process that is a ‘quote-to-claim’, easy experience for the consumer. Currently, they use advanced analytics to issue quotes within minutes and create savings for their customers.
Pie Insurance President and Co-Founder, Dax Craig, said the US insurance industry was worth $300bn annually, but that the lack of digitisation was holding back the sector’s growth rate.
"Commercial insurance in the United States generates $300bn in annual premiums. However, the industry operates in an almost entirely analogue environment. Pie leverages technology to modernize the entire insurance experience for small businesses, and our rapid growth is a testament to the huge unmet need in the market."
Pie’s climb to success is in part due to the company growing its agency channel to more than 1,000 partners since the beginning of 2020. Powered by the latest technology and analytics. In August, Pie released its partner portal. This makes it easier for partner agents to submit their clients for coverage and track their status in real-time.
Speaking about the company’s success, John Swigart, Co-Founder and CEO of Pie Insurance, remarked: “Reaching $100m in written premium in such a short time since our founding shows that there is a massive appetite for workers' comp insurance that is simple, trusted and affordable.”
He continued, “We recognise the numerous challenges that small businesses are currently facing, and we believe finding insurance shouldn't add to their burden. We're proud to help small businesses around the country save money and get workers' comp insurance quickly so they can focus on what's important—growing their business."
TrueMotion insurtech acquired by Cambridge Mobile Telematics
One of the world’s leading telematics insurtechs, Cambridge Mobile Telematics, was launched in 2010 and powers 65 enterprise programmes in 28 countries.
Meanwhile, TrueMotion, which launched in 2012, has enjoyed significant success as a telematics operator, raising US$10mn in its seed funding round in 2010, and then partnering with the motor insurtech Noblr in 2019.
TrueMotion has also entered the European market, collaborating with LB Forsikring to promote safe driving in Denmark.
The joining of the companies means TrueMotion’s 150-strong workforce will join Cambridge Mobile Telematic’s already established team, along with their client list, which includes Travelers, Farmers, and Progressive.
The new company will focus on increased interest in using telematics for crash reconstruction in personal lines claims and more innovation in the telematics space.
Speaking about the acquisition, William Powers, CEO, and co-founder of Cambridge Mobile Telematics, described the move as an opportunity to explore new markets, expand throughout the US and bring telematics to a much wider customer base.
"With this acquisition, we will use our world-class talent, technology, and scale to help our partners overcome the complex challenges of global road safety,” he added.
Ryan McMahon, VP of insurance and customer affairs for Cambridge Mobile Telematics, explained that expanding the company with additional talent and customers would help meet the demands of a growing telematics market. He also quoted data from a study by J.D. Power which revealed that personal auto telematics users have doubled in five years to 16% of policyholders.
McMahon told the press, “This market is rapidly expanding, and building more capabilities is more important than ever,” McMahon says. “Both companies follow similar philosophies and grew up in similar ecosystems, and now we’re bringing those cultures together.”
He continued, “Telematics is absolutely the future of commercial auto and rideshare, and it’s kind of a step up beyond the normal telematics."
McMahon added, “We will not only widen our lead in smartphone telematics, but also use our combined talent to invent new products for risk measurement, contextual telematics, and crash mitigation across emerging mobile, IoT, connected-car, video, and sensing technologies.”
Five reasons why telematics is in demand
- It reduces fuel costs and increases operational efficiency. This is a consideration for most commercial fleets given the rising costs of fuel
- The technology enables fleet managers to plan operations with greater precision by providing exact locations, timescales, and speeds of vehicles.
- It improves driving standards and monitors driver behaviour, reducing detours and ensuring responsible driving.
- It helps fleet health and maintenance by monitoring the health of operational vehicles.
- It increases corporate social responsibility in terms of care for the driver, the vehicle, the impact of driving in terms of emissions, and also the security of the vehicle itself.
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