Kin Insurance plans to expand its pilot program developed in Florida to other states that suffer severe weather, like the flooding shown here. | Adobe Stock
Kin Insurance raised $35 million in a Series B Round, bringing the carrier’s funding up to $86 million, Business Wire reported.
The latest investment follows Kin’s regulatory approval less than 12 months ago for its reciprocal exchange, the Kin Interinsurance Network. Customers get a share of the underwriting profits in this type of insurance company, Business Wire reported.
Kin plans to offer its solution to homeowners across the United States, starting with the places where severe weather has the greatest affect. The company piloted the program in Florida.
Funding cam from Commerce Ventures, with the reinsurance business of Hudson Structure Capital Management Ltd., Alpha Edison, Allegis NL Capital, Flourish Ventures, Avanta Ventures, QED, August Capital, the University of Chicago through its Startup Investment Program and other investors.
"As early investors in Kin, we're excited to see how fast the company has grown from startup into a market-leader for directly marketed homeowner’s insurance," Dan Rosen, founder of Commerce Ventures, told Business Wire. "While many insurers spend much of their gross margin paying third-party agents, Kin has eliminated those costs, thus making the experience both simpler and more affordable for customers.”
“We believe in creating meaningful change for homeowners who need our solution the most,” Sean Harper, Kin’s CEO and co-founder, told Business Wire. “Since we established our carrier last summer, we have been able to innovate much faster because we depend less on legacy insurance infrastructure.”
Kin, unlike legacy insurers, isn’t stuck with outdated technology. The carrier’s proprietary program enables the company to review price risks in real time, put new products through development and launch in a week and collect and use more data. The technology cuts its general and administrative expenses. Those costs consume approximately 15% of premiums for the legacy insurers.
Rather than approaching customers through outside agents, Kin sells directly ton consumers. With 17% of premium costs paid to outside agents and the infrastructure they use, Kin and its customers benefit from the lower costs by not using the agents.
"Kin is the insurance company that all the incumbents want to be," Emmalyn Shaw, managing partner of Flourish Ventures told Business Wire. "With a relentless focus on customer needs and outstanding business execution, the A-rated company now offers the lowest-cost, most customizable products on the market and boasts an impressive NPS of 84, which is about double the industry average. If its success in the Florida homeowners market is an indication of what's to come, Kin is well positioned to become the next great national insurance firm."
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