Insurtech Giant Policygenius Closes $125 Million Round
As the FinTech sector has expanded over the years, new subsections of the space have grown as well. Among them is the “insurtech” field, which not only features startups offering traditional insurance products via new means but also features other businesses looking to improve the insurance-buying process through aggregation. One of the largest names in the latter category is Policygenius. Now, continuing to show its dominance, the platform has raised another “megaround.”
Policygenius announced it had closed a $125 million funding round. The Series E included participation from returning investors KKR, Norwest Venture Partners, and Revolution Ventures as well as new investors, such as Brighthouse Financial, Global Atlantic Financial Group, iA Financial Group, Lincoln Financial, and Pacific Life. To date, the company has raised a total of $286 million, including a $110 million Series D in late 2019 and early 2020.
Policygenius is a popular insurance policy marketplace that helps consumers compare auto, home, renters, life, and other types of insurance products. Furthermore, the insurtech has developed technology that not only helps obtain quotes but also assists with underwriting. According to their site, the company has connected more than 30 million users with policies since launching in 2014. They also report seeing a 6x increase in new premiums written between 2019 to 2021.
This latest funding round also followings the rollout of Policygenius Pro, which was unveiled earlier this year. Pro is a B2B platform, enabling firms to help their clients find insurance products via Policygenius. Currently, the offering is being marketed to financial advisors, credit unions, mortgage brokers, and others.
In a press release announcing the Series E, Policygenius co-founder and CEO Jennifer Fitzgerald said, “Over the past eight years, we’ve invested in the critical areas of technology, operations, and product development to deliver the best outcomes for our customers, carriers, and distribution partners. With the support of our new and existing investors, we’re excited to expand our already-large reach across the trillion dollar insurance market.”
While Policygenius may be a leader in its space, they are one of several insurtech companies to gain investments in recent months. For example, Ladder — which bills itself as the first fully digital life insurance company — raised a $100 million Series D in October. Looking back further, Hippo Insurance closed a massive $350 million Series E in late 2020 before going public in 2021.
With the latest funds, Policygenius says it plans to invest in growing its core businesses. These include life, disability, home, and auto insurance as well as the recently-added no-exam life insurance offerings. Plus, the company intends to continue building its Policygenius Pro platform. With $125 million and plenty of connections to help them reach those goals, don’t be surprised to see Policygenius continue to be a top-tier player in the space for some time.