Branch Insurance Raises $50M to Break the Vicious Cycle of Overpriced Insurance
Using One of the Largest Insurtech Series B Rounds in History, Branch Will Expand Its "Built-for-Savings" Home and Auto Coverage Nationally
COLUMBUS, Ohio, June 9, 2021 /PRNewswire/ -- 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.
Beyond its unique built-for-savings structure, Branch has created deep and innovative connected home discounts. Branch has also launched unique programs that leverage the power of community to make insurance even less expensive. Members are rewarded for inviting trusted friends to join Branch, practicing safe driving behaviors, and pledging that their friends in the Branch community will not commit insurance fraud. Branch also works alongside its non-profit entity, SafetyNest, to help those who are un- or underinsured. Branch believes it can create a more virtuous cycle in insurance: making insurance less expensive so that more people can become insured, helping everyone save money and be better protected.
The startup has achieved a rapid 435% growth in its partner channel, 660% growth in active policies, and a 734% increase in active premium less than one year after its $24 million Series A. Armed with one of the largest insurtech Series B rounds, Branch is targeting the $700 billion Property & Casualty industry, with the goal of reaching 80% of the U.S. population by the end of 2021. To learn more about Branch and its programs, head to OurBranch.com.
About Branch Insurance
Branch Insurance utilizes innovative technology to make bundling home and auto insurance online quicker and easier than ever before. By tapping into the power of community, Branch is on a mission to make insurance more accessible and affordable for everyone. Branch was founded in 2017 by insurance veteran Steve Lekas and tech entrepreneur Joe Emison, and is headquartered in Columbus, Ohio. Branch is underwritten by the Branch Insurance Exchange and General Security National Insurance Company (GSNIC) and backed by SCOR SE, all A-rated insurance entities. To learn more, visit OurBranch.com.
About Anthemis Group
Anthemis cultivates change in the financial system by investing in, growing and sustaining businesses committed to improving the world. We are founded on three guiding principles — authentic collaboration, virtuous cycle outcomes, and diversity and inclusivity — and our deep understanding of markets and models, passion for emerging technology and values inspire everything we do. By creating fertile ground for a diverse group of startups, investors, entrepreneurs, institutions, academics and visionaries to converge, we believe we can solve the financial services world's most pressing challenges faster, better and for the benefit of all. Learn more at www.anthemis.com.
CONTACT:
Ally Majewski
[email protected]
SOURCE Branch Insurance
Related Links
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article