Branch Insurance has recently closed a $50 million Series B funding round – an amount it claims is the largest B round raised by an insurtech.
The funding round was led by Anthemis Group. Other participants included Acrew, Cherry Creek Holdings, and existing investors Greycroft, HSCM Bermuda, American Family Ventures, SignalFire, SCOR P&C Ventures, Foundation Capital, and Tower IV.
In a release, Branch Insurance said that together with the amount from the Series B round, it has raised $82.5 million to date. It plans to use its latest investment funding to fuel its national and partner channel expansion efforts.
Branch Insurance seeks to disrupt the traditional modes of insurance application and quotation by enabling customers to get instant insurance prices online – with just a few pieces of information. The insurtech also aims to integrate insurance at the point of sale of other products, allowing Branch to pay less than traditional insurers for customer acquisition and thus offer a lower price.
“The industry is structurally flawed and it harms consumers. Complicated policies, rising costs, and marketing warfare all contribute to a vicious cycle that results in overpriced insurance,” said Branch co-founder and CEO Steve Lekas. “Branch was built differently in order to break that cycle and introduce consumers to insurance that is simple to buy, offered in moments of convenience, and meaningfully less expensive.”
“It’s no coincidence that Branch is the first investment from our new growth fund; we are thrilled to support a company so aligned to Anthemis’ core values of authentic collaboration, virtuous cycle outcomes, and diversity and inclusivity. Branch is innovating on both tech and product design to build a 21st-century insurance company,” commented Anthemis Group partner Ruth Foxe Blader.
Branch said in a release that less than a year after its $24 million Series A funding, it managed to achieve 435% growth in its partner channel, 660% growth in active policies, and a 734% increase in active premium. The company hopes that thanks to the sizable Series B funding, it can start tackling the $700 billion P&C industry, with the goal of reaching 80% of the US population by the end of 2021.