Personal Insurance Site Gabi Raises $9.5 Million; Now Selling in 6 States

February 21, 2018

San Francisco-based personal insurance shopping site Gabi has raised $9.5 million in Series A funding, led by Canvas Ventures. Also joining the round are Correlation Ventures, Northwestern Mutual Future Ventures, Securian Ventures and prior investors Capital Ventures and Project A.

Gabi said it plans to use the funds to accelerate its nationwide expansion. The digital agency began offering auto and home insurance in California in 2017. Today it is also available in Ohio, Texas, North Carolina, Pennsylvania and Arizona. Gabi currently offers insurance for auto, home, renters, umbrella and life.

The Gabi model promises consumers savings by “continually comparison shopping” for buyers and by eliminating agents and brokers. It also promises carriers quality customers who file few claims while promoting how it easy it can be for customers to switch from one insurance carrier to another for a better deal.

“Instead of relying on insurance agents who may be driven by commission or only compare a few quotes, Gabi’s technology automatically scours the 25 largest insurance companies in the U.S., including Nationwide, Travelers, and Safeco, for the best rates and most relevant offerings,” says Hanno Fichtner, CEO and co-founder.

Rebecca Lynn, general partner at Canvas Ventures who will join the Gabi board, says Gabi is “going after the $75 billion worth of commissions that are paid every year in property, casualty and life insurance.” The investor thinks the technology can be tailored over time for other insurance products.

Krzysztof Kujawa, Gabi’s other co-founder and chief product officer, says the service “continually comparison shops” because insurance company rates and offerings are constantly changing. He said two out of three of Gabi’s customers save money on insurance, with an average savings of $460 per year.

Gabi connects to the current auto or home insurance account of the customer, compares prices, discovers the best offers, and presents opportunities to switch. Customers then manage their insurance products using Gabi’s app or they can call a service agent if they wish.

If customers choose to switch at any time, “they are not required to repeatedly fill out long insurance forms, and they are not spammed with unwanted calls or emails,” says the company.

According to the company, its fastest-growing demographic is the 35-55 age group. The company also targets what it calls “passive” shoppers who may have looked for insurance years ago but have not constantly researched.

Gabi claims that its algorithm can identify quality customers; it says its average customer has a loss ratio below 30, which is below the industry average of 70.

Editor’s Note: Here a reply from Gabi CEO and co-founder Hanno Fichtner on why Gabi thinks Insurance Journal was wrong to report that Gabi is out to eliminate agents and brokers: Startup Agency Gabi CEO: ‘We Don’t Want to Eliminate Agents’

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Latest Comments

  • February 22, 2018 at 5:05 pm
    Agent says:
    What modeler thought up this idea?
  • February 22, 2018 at 4:08 pm
    TheInsAgency says:
    or, Gabi leverages the carriers for more commission on the promise of volume of business...
  • February 22, 2018 at 3:05 pm
    Carlos says:
    So they sell a product they are not appointed to sell?

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