The Series B round supports the insurtech’s efforts to modernize an industry rife with inefficiency.
Kin Insurance, the insurance technology company that makes home insurance easy and affordable, announced a $35 million Series B round. The funding was led by Commerce Ventures with participation from Hudson Structured Capital Management Ltd. (doing its reinsurance business as HSCM Bermuda), Flourish Ventures, QED, Alpha Edison, Allegis NL Capital, Avanta Ventures (venture arm of CSAA Insurance Group, a AAA Insurer), August Capital, the University of Chicago via its Startup Investment Program, and others.
Read More: GlobalFintechSeries Interview with Chuck Klein, Chief Executive Officer & Founder at IMM
Kin Insurance Closes $35M Series B to Fuel Industry Disruption
This round brings Kin’s total funding to date to $86 million. The investment comes less than a year after Kin received regulatory approval for the Kin Interinsurance Network (KIN), its reciprocal exchange – a form of insurance company that shares underwriting profits with customers. With its latest round of funding, the company plans to bring its solution, piloted in Florida, to homeowners across the U.S., starting with states most affected by severe weather.
Read More: A Quick Review on Some of The Biggest Global Fintech Mergers & Acquisitions
“We believe in creating meaningful change for homeowners who need our solution the most,” said Sean Harper, Kin’s CEO and co-founder. “Since we established our carrier last summer, we have been able to innovate much faster because we depend less on legacy insurance infrastructure.”
Whereas legacy insurers rely on outdated, inflexible technology, Kin’s proprietary platform allows the company to develop and launch new products in as little as a week, price risks in real time, and ingest more data than competitors. Kin’s technology also reduces general and administrative expenses, which constitute roughly 15 percent of premiums at legacy homeowner’s insurance companies.
Kin also differs from legacy companies by selling its products directly to consumers rather than through outside agents. Traditional insurers spend about 17 percent of premiums paying outside agents and maintaining the infrastructure to support them. By selling directly to consumers, Kin eliminates those costs.
Read More: Hummingbird Raises $8.2M To Automate Financial Compliance Technology
