Insurify leverages ML-based models to enable users to obtain the best insurance rates from home and has secured $100M in Series B funding, as per Ann Azevedo on TechCrunch. [insurify mlbased 100m series azevedotechcrunch]
- Insurify raised $100M in Series B funding led by Motive Partners to expand its product suite
- The company uses ML models to help users find the best insurance rates for home, auto, health, and life insurance from home
- Insurify has grown by 151% annually for the past three years and aims to enhance API integrations to provide better-personalized experiences
- Insurify is the only insurtech company covering home, auto, and life insurance, which distinguishes it from the competition
- Insurify’s unique business model allows it to make money via commission and monetization even if its SaaS services are not being used
- Insurify’s success lies in its product suite, efficient machine learning approach, and straightforward online purchasing process
In a Series B funding round led by Motive Partners, Insurify has raised $100 million in investments to help accelerate its products suite. The company helps people get better rates on their insurance plans, on homes, auto, health, and life insurance.
As the round was participated by a number of existing and new backers, it shows that Insurify is not only attracting new customers but also the big VC companies and will continue to do so in the future. What’s interesting is that the internet “concluded” that Insurify may have achieved unicorn status, but the company refused to disclose the post-money valuation.
The new investors in the funding round were Fort Ross Ventures and Viola Growth while the existing backers included MassMutual Ventures, Viola FinTech, Moneta VC, Hearst Ventures, and Nationwide.
A Viola Growth general partner, Harel Beit-On, believes that Covid-19 has pushed everyone into adopting online shopping, and buying online insurance is the next step in the way. [insurify mlbased 100m series azevedotechcrunch]
“It is time to bring the frictionless purchasing experience that customers expect to the insurance space as well,” said Beit-On. “We watched Insurify’s immense growth, excellent execution with customer acquisition, and building a brand consumers trust,” she added.
Insurify also partnered with Toyota Insurance Management Solutions and Nationwide to offer insurance products and Nationwide invested in the recent Series B funding round.
Insurify: Financial Profile
|Announcement Date||Funding Round||Lead Investor||Money Raised|
|September 1, 2021||Series B Round||Motive Partners||$100M|
|January 15, 2020||Series A Round||MTech Capital, Viola FinTech||$23M|
|March 16, 2017||Seed||MassMutual Ventures, Nationwide Ventures||$4.6M|
|January 28, 2016||Seed||Rationalwave Capital Partners||$2M|
Insurify had closed its seed funding co-led by Viola FinTech and MTech Capital, and since then, the company has seen over 6 times the growth in recurring revenue, as reported by Mary Ann Azevedo on TechCrunch.
The company has grown by 151% every year for the past three years and has had 2.5 times more revenue each year compared to the previous year, according to the company’s CEO, Snejina Zacharia. Zacharia also said that Insurify improved its home insurance marketplace and sped up the buying process by working more closely with insurance companies since getting Series A funding.
At the time of the Series B round, Insurify had a team of 125 employees and they have plans to add to the team, thanks to the fresh funding. They aim to enhance their API integrations to provide customers with real-time direct quotes and better-personalized experiences. They also want to find more opportunities for embedded insurance products and expand their product functionality.
Other than that, Kiyazov revealed that the company might expand into pet insurance as well, as the area is not much looked at and people love their pets. [insurify mlbased 100m series azevedotechcrunch]
Insurify has tough Competition. Not!
Even though the fintech company may look successful, and it is, it does not mean that it doesn’t have competition. Its direct competitor, Jerry, is another insurance services provider but only focuses on automobiles.
Another competitor of Insurify is The Zebra, which also uses machine learning models to suggest the best quotes to its customers regarding auto insurance. To put The Zebra’s status against Insurify into context, The Zebra recently became a unicorn in 2021 and will continue to grow further as the company is accelerating its product suite. Additionally, the company uses AI and machine learning to quote real-time price data to its customers, something similar to what Insurify does.
What is Insurify doing differently?
Now, the reason why Insurify is winning among these is its products suite and the ability to expand its services across new customer bases. Moreover, the competition we’ve just addressed lacks the efficient machine learning approach that Insurify is known and trusted for.
“Our goal is to provide an experience for the end consumer that allows them to service and manage all of their policies in one place, digitally,” said Zacharia.
“We think that the data recommendations that the platform provides can really remove most of the friction that currently exists in the shopping experience,” she added. [insurify mlbased 100m series azevedotechcrunch]
Insurify has been successful in identifying the customer’s needs and preferences. According to what they wrote in an email to TechCrunch, “customers prefer choice, presented as a simple menu of products and prices from different insurers, and a straightforward online purchasing process.”
Also, they are the only insurtech company covering home, auto, and life insurance, which distinguishes them from the so-called competition. Their business model is also unique; the company works as a fully licensed insurance agent to provide insurance services. They make money via commission and monetization even if their SaaS services are not being used.
From Accident to Innovation: Zacharia’s Journey in Building Insurify
Co-founder of Insurify, Snejina Zacharia, was an executive at Gartner. Back when she was doing her MBA at MIT, she got into a minor accident which led to unexplained medical bills while having an insurance plan. Her car insurance experience was also frustrating, as she explains it as “complex and cumbersome.”
After that, she decided to come up with a solution and she teamed up with Tod Kiryazov and Giorgos Zacharia (her husband).
“We decided to build the most trusted virtual insurance agent in the industry that allows for customers to easily search, compare and buy fully digitally – directly from their mobile phone, or desktop, and really get a very smart, personalized experience based on their unique preferences… We leverage artificial intelligence to be able to make recommendations on both coverages as well as carrier selection,” Zacharia told TechCrunch. [insurify mlbased 100m series azevedotechcrunch]