ICYMI, the latest news on insurtech investment;
Branch Insurance, the startup that pioneered instantly-bundled home and auto insurance, has closed a $50 million Series B fundraise to fuel its national and partner channel expansion. The round was led by Anthemis Group with participation from Acrew, Cherry Creek Holdings, and existing investors Greycroft, HSCM Bermuda, American Family Ventures, SignalFire, SCOR P&C Ventures, Foundation Capital, and Tower IV. Branch has raised $82.5 million to date.
Branch was founded with the belief that insurance should be easier to buy and more affordable for all. To that end, Branch spent years designing a unique insurance company built to maximize customer savings. By enabling consumers to get instant, online insurance prices using just a few pieces of information, Branch has made it quicker and easier than ever to buy insurance and has all but eliminated the antiquated insurance application and quote estimate.
“The industry is structurally flawed and it harms consumers. Complicated policies, rising costs, and marketing warfare all contribute to a vicious cycle that results in overpriced insurance,” said Steve Lekas, Cofounder and CEO of Branch. “Branch was built differently in order to break that cycle and introduce consumers to insurance that is simple to buy, offered in moments of convenience, and meaningfully less expensive.”
Branch is focused on removing as much friction as possible from the insurance-buying process, enabling the company to partner across the mortgage, home building, auto, and home security industries and instantly embed Branch into the buying experience. By integrating insurance at the point of sale of other products, Branch pays less than traditional insurers for customer acquisition and therefore offers a lower price. Branch has already inked deals with industry-leading names like Rocket Mortgage and ADT and, with this new funding, plans to accelerate its rollout across the U.S. to enable more national embedded partnerships.
“It’s no coincidence that Branch is the first investment from our new growth fund; we are thrilled to support a company so aligned to Anthemis’ core values of authentic collaboration, virtuous cycle outcomes, and diversity and inclusivity. Branch is innovating on both tech and product design to build a 21st-century insurance company,” said Ruth Foxe Blader, Partner at Anthemis Group.