(Image source: Branch.)
Branch Financial, Inc., a Columbus, Ohio-based insurance startup providing personal auto, homeowners, rental and umbrella insurance products direct to consumers, has closed a $24 million Series A funding round. The round was co-led by Greycroft (New York and HSCM Bermuda (Hamilton), with participation from returning investors American Family Ventures (Madison, Wisc.) and Revolution’s Rise of the Rest Seed Fund (Washington, D.C.), as well as new investors SignalFire (San Francisco), SCOR Global P&C (Paris), Elefund (Palo Alto, Calif.), Foundation Capital (Palo Alto, Calif.), and individuals from Stone Point Capital (Greenwich, Conn.).
Branch offers a value proposition of bundling home and auto insurance with only two factors: name and address. The company says its seamless data integrations eliminate the traditional insurance application and quote estimate, presenting clients with an instant, purchasable price instead of just an estimate.
Over the last 12 months Branch has launched in Arizona, Illinois, Missouri, Ohio, and Texas. The company reports that its Series A funding will spearhead a strategic nationwide expansion plan through 2021. Branch says its technology can easily be integrated into home-financing and car-buying websites. The company claims that home and automobile sellers are happy to add Branch to their site because it equips customers with insurance without a significant drop-off in conversion rates. “Customers don’t need to dig up additional information to apply or wait for a quote, so they’re more likely to complete their purchase,” a company statement says.
“Branch is on a mission to make home and car insurance less expensive for all, enabling more of us to be financially protected from life’s uncertainties,” comments Steve Lekas, Co-founder and CEO, Branch. “This investment further equips Branch to bring instant, financially strong, and less expensive insurance to so many more.”
Unique Instant-Bind Capability
“Branch’s unique instant-bind capability, allowing people to buy bundled home and auto insurance after only giving their name and address, has never been possible before,” says Ian Sigalow, Co-founder & Partner of Greycroft. “Branch also brings community back to insurance in a way that reduces cost and increases the number of people who can get coverage, which is beneficial to all.”
Branch has introduced two community programs, My Community Discount and Community Pledge, which it says strive to use the power of community to make insurance more accessible and affordable. Branch also started a 501(c)(3) non-profit called SafetyNest, chartered to insure the financially excluded and lower the cost of insurance for everyone.
“We have followed the Branch story since 2018 and are thrilled to have the opportunity to co-lead the round,” comments Vikas Singhal, Partner & CIO of HSCM Bermuda’s InsurTech efforts. “Branch has innovated across many critical areas of the insurance value chain – distribution, technology, risk management, and capital.”