San Francisco-based commercial insurance broker Newfront Insurance announced it has raised over $100 million, valuing the company at $500 million. The company’s lead investors are Founders Fund and Meritech Capital.
Founded in 2017, the company says it has rebuilt the brokerage model using a combination of software and experts to provide clients with a more transparent, efficient, and data-driven approach to risk management. Newfront’s CEO Spike Lipkin attributes the rapid growth to a team that blends experience from insurance industry leaders like Alliant, HUB, and Lockton with executive experience from technology industry leaders like Uber, LinkedIn, and Intuit. Garth Hamilton, former Chief Sales Officer at HUB International, says he joined Newfront because “Newfront assembled the right team with the right vision and experience to bring about the change our industry so desperately needs.”
“We are fortunate to have built a strong and thriving business over the last three years with industry-leading talent and the resources and guidance from some of the most successful innovators in American history. We’ve spent this time building our internal platform and resolving many of the complex operational challenges associated with running a technology-driven brokerage. With this solid foundation, we are looking towards significant and sustained growth over the next eight quarters.” – Newfront’s CEO, Spike Lipkin.
“Newfront is one of those incredibly rare businesses that has the opportunity and the team to rebuild an industry that is crucial to the economy that today provides a subpar client experience. The future is bright for Newfront.”- An early investor in PayPal and founder of billion-dollar businesses like Xoom and Eventbrite, Kevin Hartz.
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Chubb Chairman and CEO Evan Greenberg is reiterating a call for litigation reform nationally and at the state level to address what he said is a “systemic” worsening of the legal environment and its harmful impact on the insurance industry.