Boost Insurance (“Boost”), the leading B2B digital insurance platform, today announced that it has completed a $20 million Series B financing round to fuel growth of its platform, new product development and partner marketing. The round was led by RRE Ventures and included new investors Fin VC, Gaingels, Hack VC and a global publicly traded reinsurance company along with existing investors Greycroft, Coatue, and Conversion Capital. Boost’s funding since inception totals $37 million.
Founded in 2017, Boost’s integrated insurance-as-a-service platform unlocks the $700 billion property and casualty insurance market, allowing innovative companies from any industry to build, embed, and manage insurance programs for their customers. Its simple API integration packages the necessary operational, compliance, and capital components to allow companies to deliver highly configurable insurance products directly to consumers through a fully embedded experience within their own front-end environments.
Boost powers dozens of digital distribution clients across all industries and stages, including notable insurtechs Hippo, Aon’s CoverWallet, Cowbell Cyber, and Wagmo, and leaders in diverse fintech, proptech, and other B2B and consumer segments. Companies that leverage Boost’s infrastructure reduce the cost of building and managing their insurance businesses by over 90%, with integrations taking as little as two weeks. When compared to the 12-48 months typically required to build a managing general agency (MGA), Boost’s platform dramatically reduces the barriers to entry for both new entrants and high-growth emerging players in what has historically been a slow-moving and analog insurance industry.
“The embedded fintech revolution has finally caught up to insurance,” said Alex Maffeo, CEO and founder of Boost. “We spent the last five years building the most comprehensive infrastructure platform in the insurance industry and that hard work is paying off. We’ve invested as much in the compliance and capital side of our platform as we have in our technology, which differentiates Boost and attracts the world’s best insurtechs and enterprises to us when they look for a partner.”
Mordor Intelligence estimates that venture and growth investment in the insurtech segment is expected to grow at a compound annual growth rate of 48.8% from 2021 to 2028, reaching USD $60.9 billion by 2028, as tech-enabled companies across industries look for embedded insurance and financial products to diversify revenues and enhance their customer experience. Boost follows in the footsteps of companies like Plaid (banking-as-a-service) and Affirm (point-of-sale financing) in offering cost-effective, efficient digital solutions for insurance-as-a-service across commercial lines products (business owners policy and startup D&O insurance), personal lines products (renters insurance, pet health insurance, and crypto wallet theft protection), and an ecommerce bundle (warranties, shipping, and package theft). Since launch, Boost has insured over $5 billion of value across a wide range of proprietary commercial and personal lines insurance products.
“API-driven infrastructure platforms have fundamentally changed the way companies are built and scaled in almost every fintech vertical,” said Jason Black, General Partner of RRE Ventures. “We’ve seen firsthand that Boost is far and away the leader in the embedded insurance space, so we’re incredibly excited to join the team as they continue powering innovation in an industry that’s ripe for disruption.”
“The structure of one-size-fits all insurance companies using heavy-handed analog distribution was leading to disengaged consumers and high costs of capital. This created a huge white space opportunity for fast, customizable, and cost-efficient solutions in insurance, so that every company could offer their customers protection built for the modern world. Boost went to market to solve this industry-wide problem and has already achieved remarkable success,” said Logan Allin, Founder and Managing General Partner of Fin VC.
Boost plans to double its team over the next 12-18 months to support growth across its insurtech and embedded partner channels while continuing to expand its API platform features. The Company also expects to roll out a number of additional insurance products in 2021 in collaboration with its partners in the insurtech and broader technology industries.
Source: PR Newswire