Buckle disclosed it has raised $31 million in new venture financing, and the digital seller of rideshare insurance will use the money to expand operations nationally.
HSCM Bermuda and Eos Venture Partners co-led the Series A round, which is also slated to fuel new products and partnerships.
Vikas Singhal, partner and CIO of InsurTech at HSCM Bermuda, said that Buckle is well-positioned to take advantage of a growing ride-hailing market.
“The ride-hailing market is expected to grow globally to approximately $260 billion by 2024,” Singhal said in prepared remarks. “As the market grows, demand for straightforward and affordable insurance coverage for both providers and TNCs will grow with it. We’re excited to help the Buckle team take the company to the next level.”
Buckle, based in New Jersey, launched as a managing general agent in 2019 with its initial rideshare insurance policy combining personal and commercial coverage through a collaboration with Munich Re’s Digital Partners. That program is now expanded through a partnership with ridesharing company Lyft, Buckle said.
In June Buckle bought Gateway Insurance Company from carrier Atlas Financial Holding as a way to support the Atlas managing general agency Anchor Group Management Inc. By doing so, Buckle can work with Atlas to sell auto insurance to the commercial auto market for clients such as part-time rideshare and delivery drivers, full-time taxicab and limousine drivers, and more. In other words, the deal will help expand Buckle’s commercial auto coverage capacity.
Buckle co-founder Marty Young told Carrier Management that the Gateway Insurance transaction made sense in the company’s evolution.
“As a digital managing general agent (MGA), we controlled distribution, underwriting and claims,” Young said. “So, taking on the responsibility and risk management of a carrier made perfect sense.”
Young said that Atlas Financial Holding will be run as a “digital front” rather than a more traditional “full-stack carrier.”