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."
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.”