California-based insurtech firm Hippo has secured $70 million in a funding round co-led by investment firm Felicis Ventures, and homebuilder Lennar Corporation.
All major existing investors also participated in the round of funding. Hippo will utilize the funding to accelerate growth while continuing to deliver a modernized home insurance product on a national scale, according to a corporate statement.
Hippo launched in 2017, providing insurance policies with more comprehensive coverage for today’s homeowners while cutting premium costs up to 25 percent, the firm said. Since January 2018, the company grew its policy sales by 30 percent month over month and launched into 11 new states covering more than $25 billion in total property value, the company added.
Insurtech is anticipated to grow from 4 percent of the current insurance market to more than 10 percent by 2023, according to a recent Jupiter report, totalling more than $400 billion in premiums. Today, Hippo is accessible to more than 50 percent of the US homeowner population, and that number is anticipated to grow to more than 60 percent by the end of 2018.