Hippo Insurance said it has secured a $100 million financing round that will help propel a broader U.S. expansion of its super-quick online homeowners insurance.
Global technology investment firm Bond led the Series D financing, which also included participation from Comcast Ventures, Felicis Ventures, Fifth Wall, Hillhouse Capital, Horizons Ventures, ICONIQ Capital, LennarCorporation, Michael Ovitz, Pipeline Capital, Propel Venture Partners, RPM Ventures, Standard Industries and Zeev Ventures.
Including the new venture financing round, California-based Hippo has raised $209 million. The substantial investment commitment elevates Hippo to the ranks of companies like Lemonade, the upstart InsurTech carrier that has nailed down nearly $500 million in financing to date, including a $300 million round disclosed in April 2019.
Hippo, which operates as a managing general agency, said it will use the new cash infusion to help it reach more than 80 percent of the U.S. homeowner population by the end of 2019. The money will also enable Hippo to expand its direct-to-consumer product portfolio and grow an expanding distribution network of industry partners, according to the financing announcement.
Hippo claims it can provide online homeowners insurance quotes in as little as 60 seconds and a full policy in about three minutes. Its online portal lets consumers type in their address, after which Hippo’s software searches a number of data providers to bring back most of the information traditionally needed when applying for homeowners insurance. Premiums through Hippo can be up to 25 percent cheaper as a result, the company said. Swiss Re is the reinsurer, and TOPA Insurance in California acts as the carrier to back policies, Hippo previously noted.
Hippo also provides customers with complimentary smart home devices to protect homeowners against water leaks, fire damage and break-ins. The company claims an installation rate of more than 70 percent to date among its clients.
Hippo said it has built an extensive partner distribution network, including homebuilders like Lennar, lenders like Better.com, homeowner insurers like First American Property & Casualty Insurance Company and key brands within the Connected Home like Xfinity. As part of Hippo’s partnerships with homebuilders, some newly constructed homes will have builder-installed smart sensors that help reduce the ongoing maintenance costs, which can help save customers more on their insurance premiums over time.