Embroker Raises $100 Million to Expand Business Insurance Platform
SAN FRANCISCO, June 09, 2021 (GLOBE NEWSWIRE) — Embroker, the digital business insurance platform making it radically simple to get insured, today announced it has secured $100 million in Series C funding. The funding round was led by FTV Capital with additional investment from HSCM Bermuda and Gaingels and follow on from Tola Capital, Canaan Partners, Bee Partners, and MassMutual Ventures. Embroker plans to utilize the new funding to expand the company into a full-stack insurtech by building its own insurance carrier.
“For Embroker to truly forge a new approach to business insurance, we need to reimagine and rebuild every part of the process,” said Matt Miller, Embroker CEO. “Even as some of the surface-level elements of insurance have become increasingly customized and digitized, the underlying legacy systems and antiquated processes endemic to this industry are needlessly complex and require a substantial overhaul. This investment round will help us make business insurance a more streamlined and radically simple experience by accelerating our progress in building many of these systems from the ground up.”
Embroker’s innovative platform and products are experiencing substantial growth in the market and driving industry-leading customer satisfaction. Across all products, Embroker surpassed $20 million in gross written premium for the first quarter of 2021 and achieved over 100% retention. Year to date, the company has also grown its digital products more than 300 percent while earning an NPS score of 77. This latest funding announcement will provide continued investment in Embroker Access, a critical part of the company’s platform that allows retail and wholesale brokers to offer Embroker’s digital insurance products to customers.
“Embroker has proven that we can focus on a specific business segment, such as tech startups or legal services, and apply a modern approach to risk management and deliver significant value to these customers. U.S.-based venture-backed startups alone are estimated to be collectively paying upwards of $1 billion or more in premiums every year, and we’re helping them not only save money but better protect their businesses,” continued Miller. “Our mission is to replicate this approach to other business segments that have been historically under-serviced by the larger insurance companies and apply advanced technology to make policies more tailored, less expensive, and easier to purchase.”
Embroker applies modern data-driven underwriting models to assess risk better, and create policies and premiums that protect companies against that risk. This unique algorithmic-based risk management reduces premiums for businesses by up to 20 percent. The Embroker experience is both digital when customers need the ease of technology and personal when they want the guidance of experts. All of Embroker’s digital insurance products are instantly underwritten by Embroker’s insurance platform and are fully backed by A+ rated reinsurers including Munich Re and Everest Re.
“Led by a management team with deep domain expertise, Embroker has thoughtfully taken a digital-first approach to broadening its suite of proprietary specialty line offerings and enhancing its technology infrastructure. This strategy has resulted in an accelerating growth trajectory as the company is successfully delivering on the unique needs of the vertical business segments,” said Mike Vostrizansky, FTV Capital principal and Embroker board member. “We are very excited about partnering with the Embroker team, and we look forward to sharing our learnings from 22 years of fintech investing, as well as connecting the team with relevant strategic financial introductions from our Global Partner Network®.”
“Unlike mono-line insurers that grow by volume only, Embroker has strategically built a business able to benefit from multiple levers for premium growth. They are effectively tailoring offerings to new, underserved end markets, adding new insurance lines to unlock broader coverage, and growing customers through policy expansion,” said Chris Winship, FTV Capital partner and Embroker board observer. “We look forward to collaborating with the team in this next phase of their growth journey.”
“We’re excited to continue our support for Embroker as it delivers innovative insurance offerings which make it easy to obtain insurance that is tailored to the needs of your business. By leveraging investments in software and data, Embroker is both revolutionizing and enabling the modernization of the insurance industry to better serve the needs of business customers,” said Sheila Gulati, Founder and Managing Director of Tola Capital.
Embroker is transforming commercial insurance by making it radically simple for businesses to get the right insurance at the best price. Embroker focuses on industry-specific coverage for the most complex and inefficient lines of insurance, such as Directors and Officers, Employment Practices Liability, Cyber, and Professional Liability. Embroker uses predictive modeling powered by proprietary technology to fully automate underwriting and make the buying process simple, fast, and more affordable. Through Embroker Access, Embroker provides partner agencies and wholesalers with the capability to offer all of Embroker’s industry-leading insurance products to their customers. Founded in 2015, Embroker is headquartered in San Francisco and has raised more than $140M in funding from leading Fintech and Insurtech investors.