(Image source: Branch Insurance.)
Branch Insurance, a startup insurance distributor with a proposition of lower-cost, 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.
Steve Lekas, Co-founder and CEO, Branch.
“The industry is structurally flawed and it harms consumers,” asserts Steve Lekas, Cofounder and CEO, Branch. “Complicated policies, rising costs, and marketing warfare all contribute to a vicious cycle that results in overpriced insurance. 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.”
Enabling More National Embedded Partnerships
Branch says it aims to remove as much friction as possible from the insurance-buying process, for example by partnering across the mortgage, home building, auto, and home security industries to instantly embed Branch into the buying experience. By integrating insurance at the point of sale of other products, Branch says it pays less than traditional insurers for customer acquisition and therefore offers a lower price. Branch reports that it has already inked deals with prominent brands, including Rocket Mortgage and ADT, and that with the new funding it 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,” comments Ruth Foxe Blader, Partner, Anthemis Group. “Branch is innovating on both tech and product design to build a 21st-century insurance company.”
Ruth Foxe Blader, Partner, Anthemis Group.
Beyond its “built-for-savings” structure, Branch says it has created 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 friends to join Branch, practicing safe driving behaviors, and pledging that their friends in the Branch community will not commit insurance fraud. Branch says it also works alongside its non-profit entity, SafetyNest, to help those who are un- or underinsured. The company sees itself fostering a virtuous cycle in insurance: making insurance less expensive so that more people can become insured, helping everyone save money and be better protected.
Branch reports that it has achieved a rapid 435 percent growth in its partner channel, 660 percent growth in active policies, and a 734 percent increase in active premium less than one year after its $24 million Series A. Branch states a goal of reaching 80 percent of the U.S. population by the end of 2021.
Startup Branch Insurance Launches Reciprocal Exchange in Ohio
https://iireporter.com/insurance-startup-branch-secures-24-million-series-a-funding/