Honeycomb Insurance Raises $36M in Series B Round

The new funding will be used to improve the end-user experience, driving enhanced profitability to Honeycomb’s broker partners and broadening the type and size of policies offered.

(Itai Ben-Zakan, co-founder and CEO of Honeycomb, Nimrod Sadot, Co-Founder & CTO of Honeycomb. Photo credit-Yossi Zeliger. Image source: Honeycomb.)

Honeycomb (Chicago), an InsurTech with the mission of providing simple, fair, and affordable multi-family property insurance, announced that it has raised $36 million in a Series B funding round led by Zeev Ventures, with the participation of new investors Arkin Holdings and Launchbay Capital. Existing investors Ibex Investors, Phoenix Insurance and IT-Farm also took part in the round.

Itai Ben-Zaken, Co-Founder and CEO, Honeycomb.

Honeycomb addresses the increasing challenge of finding landlord insurance, owing to narrowing appetite among traditional insurers using a “broad brush” approach for underwriting. For example, when major California insurer State Farm incurred losses in the state recently, it decided to completely pull out of the region and leave it to landlords and homeowners to find a solution. In other states, carriers who haven’t completely pulled out of the landlord insurance market have imposed new limitations, rendering their coverage non-viable or unavailable. Some will only insure properties built after 2004, despite more than 80 percent of U.S. residential properties being built prior to 2004.

Streamlining Customer and Broker Experience

Honeycomb reports that its proprietary AI-driven technology enables granular risk management, underwriting at the individual building level, and providing consistent coverage at a better price for well-maintained properties. In a market estimated at over $34 billion in the U.S., Honeycomb says it is the first landlord insurer to simultaneously streamline the customer and broker experience, leverage unique proprietary underwriting technology, and offer bespoke insurance coverage that adapts to ever-changing client needs. The company asserts that its technology advantage obviates the need to impose “blanket limitations” on the age of the properties it insures or similar categorical restrictions.

The company says it sells its policies directly via its platform and through a growing group of best-in-class insurance brokers, who can virtually “bulk-quote” an endless number of submissions in real time; significantly improving a process that used to take weeks to complete, and translating into greater profitability for brokers and meaningful value for customers.

“The new funding will be used to further improve the end-user experience, driving enhanced profitability to our broker partners, and broadening the type and size of policies offered,” comments Itai Ben-Zakan, co-founder and CEO of Honeycomb. “We plan to deepen our technological advantage with proprietary AI models leveraging unique first-party data and expand into new insurance markets, turning Honeycomb into a one-stop shop for everything related to commercial real-estate insurance in the U.S.”

Tripling Market Coverage over Next 12 Months

Oren Zeev, Founding Partner, Zeev Ventures.

Honeycomb reports that it now operates in sixteen of the largest states in the U.S., covering approximately 60 percent of the U.S market. The company insures more than $21 billion worth of real estate assets and expects to triple that number in the next 12 months. To achieve these goals, Honeycomb says it plans to double its staff from the current headcount of 90 employees to 180 within the next 18 months.

“Honeycomb is an example of an InsurTech company that solves a major problem in a huge market, thus allowing it to increase ARR at a fast pace and progress to operational profitability in a short time,” comments Oren Zeev, Founding Partner, Zeev Ventures, which has invested in category-defining companies such as Navan, Houzz, Next Insurance, Tipalti, and Sunbit, among others. “I am happy with this opportunity to lead the current round, as the company’s unique technological advantage positions it well to become the market leader in their space.”

InsurTech Honeycomb Raises $15.4M in Round Led by Ibex Investors

Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at AnthODonnell@IIReporter.com or (503) 936-2803.

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