Digital insurance provider Honeycomb announced it has raised $15.4 million in a Series A funding and plans to expand into more states.
The reinsurance-backed managing general agent (MGA) touts a technology stack for multi-family properties that streamlines the insurance buying process for landlords and condo owners associations. Honeycomb claims that its AI-driven technology is the first to enable the delivery of bespoke, “right-priced” insurance coverages — instantly.
The company, which only began writing U.S. policies in June of 2021, now operates in four states — Illinois, Arizona, Michigan and Ohio. It has plans this year to launch in 10 more states covering 60% of the country.
Honeycomb said it expects to insure more than $1 billion of real estate assets by the end of this first quarter.
“Commercial lines insurance and specifically insurance for multi-family properties is ripe for disruption given the sheer complexity entailed in underwriting this class of risk, its manual processing legacy, and the absence of a leader in the market,” said Honeycomb’s co-founder and CEO Itai Ben-Zaken.
Ben-Zaken said Honeycomb deploys algorithms that “parse deep, first-party, location-specific data” to more accurately evaluate risk and as a result, it can more quickly underwrite while keeping costs down.
Honeycomb allows for customized policies that include offering coverage for properties with Airbnb rentals, enhanced ordinance and law coverage, distinct business income and extra expense coverages, and a new approach to deductibles in risk-prone areas.
Ibex Investors led the funding round. SiriusPoint Ltd, a global insurer and reinsurer, and Honeycomb’s own lead underwriting capacity provider, will also participate in this funding round as will existing investors Phoenix Insurance, Distributed Ventures (FKA NFP Ventures), IT-Farm, and Sure Ventures.
With this new round, Honeycomb has to date raised $19 million.
The company sells its policies directly via its own platform and through insurance brokers.
Honeycomb has offices in Denver, San Francisco and Tel Aviv.
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