Hippo, an InsurTech focused on providing super-quick homeowners insurance, said it is gearing up for U.S. expansion enabled by a new strategic partnership.
The California-based startup said it has linked with Spinnaker Insurance to make this happen. Spinnaker, based in New Jersey, is a national property/casualty insurer that offers admitted insurance products in 46 states and jurisdictions. It relies on program administrators and managing general agents to access niche markets, with a focus on short-tail business such as homeowners, renters and small commercial.
“Spinnaker is an innovative carrier with a highly respected leadership team that shares Hippo’s belief that homeowners insurance was overdue for modernization,” Richard McCathron, Hippo’s head of insurance, said in prepared remarks. “It has already proven to be a valuable partnership.”
A Hippo spokesperson told Carrier Management via email that the startup will launch in “several new states over the coming months,” with a goal of reaching 60 percent of the U.S. population by the end of 2018. The spokesperson declined to say what states will be included in the rollout, noting the company will announce them as they happen.
Hippo, which is considered a managing general agency, currently is licensed to do business in California, Arizona and Texas, according to its website. The company was founded in 2015 and made its formal insurance marketplace debut in April 2017.
The company’s premise is to provide online homeowners insurance quotes in 60 seconds and a full policy in about three minutes. Its online portal allows consumers to type in their address, after which Hippo’s software searches a number of data providers to bring back most of the information traditionally required when applying for homeowners insurance. TOPA Insurance in California acts as the carrier to back policies, and Swiss Re is the reinsurer.
The firm disclosed a $14 million Series A round at the end of 2016. Horizons Ventures led the financing and was joined by RPM Ventures, Propel Venture Partners, GGV Capital and Pipeline Capital, plus FinTech investors and entrepreneurs.
Source: Hippo