Insurtech Hippo hungry for expansion after $100m funding round

US-based insurtech Hippo has secured $100m (£83m) in funding which it intends to use to fuel the expansion of its geographic footprint to more than 80% of the US homeowner population by the end of this year.

It also intends on deepening its direct-to-consumer product portfolio, growing its distribution network of industry partners and furthering Hippo’s brand in the home insurance market.

The Series D funding round builds on a strong twelve months for Hippo, which has seen its premiums grow more than ten times, this the company says places it among the fastest growing companies in the insurtech sector.

It was led by Bond – a global technology investment firm founded by venture capitalist and former Wall Street securities analyst Mary Meeker, along with Mood Rowghani, Juliet de Baubigny and Noah Knauf. Knauf, a general partner at Bond, will join Hippo’s board of directors in the deal.

This brings the company’s total funding raised to a total of $209m (£171m) with participation in this round from from Comcast Ventures, Felicis Ventures, Fifth Wall, Hillhouse Capital, Horizons Ventures, ICONIQ Capital, Lennar Corporation, Michael Ovitz, Pipeline Capital, Propel Venture Partners, RPM Ventures, Standard Industries, and Zeev Ventures.

Transformation

Assaf Wand, co-founder and chief executive at Hippo, said: “We launched Hippo to transform the outdated and often frustrating relationship people have with their home insurance provider into one that’s approachable, modern, and always adding value.

“Not only are more than 60% of US homeowners underinsured but traditional insurance only interacts with you when you file a claim. We’re providing more comprehensive policies and helping customers prevent claims from ever happening through protective services, programs and alerts that safeguard their homes, a family’s largest personal asset.”

The insurtech has built an extensive distribution network including homebuilders Lennar, and homeowner insurers First American Property & Casualty Insurance Company.

Launched in 2017, Hippo promises to deliver a quote in under 60 seconds using data. It claims to offer reduced premium costs of up to 25%. It provides smart home devices to protect homeowners from fire damage, water leaks and break-ins.