Insuranceciooutlook

Branch Secures $24 Million in Series A Round of Financing

By Insurance CIO Outlook | Thursday, July 23, 2020

Branch stakes its value on its ability to offer customers a firm quote for bundled home and auto insurance within seconds using just a few pieces of information.

FREMNT, CA: Branch, a Columbus, Ohio-based technology-driven home and auto insurance company, raised $24m Series A funding round. The round was co-led by Greycroft and HSCM Bermuda, with participation from returning investors American Family Ventures and Revolution’s Rise of the Rest Seed Fund and new investors SignalFire, SCOR Global P&C, Elefund, Foundation Capital, and individuals from Stone Point Capital.

Founded in 2018 by insurance veteran Steve Lekas and tech entrepreneur Joe Emison, Branch make insurance accessible through innovative technology that makes it easy to save money by bundling Home and Auto Insurance with name and address. The technology can be integrated into home-financing and car-buying websites. The company has launched in five states (AZ, IL, MO, OH, and TX) and is underwritten by the General Security National Insurance Company (GSNIC).

Instead of having customers fill out lengthy online forms and then repeat much of that information in a 30-minute phone call with an agent, which is the process many legacy insurance companies use, Branch’s technology can ping various existing consumer databases that contain all the information it needs to underwrite policies.

Branch now has license to write policies in Arizona, Illinois, Missouri, Ohio, and Texas. “We would like to be 80 percent available to the U.S. population by the end of next year,” Lekas said. That means it will need plenty of legal and other support for its regulatory filings, which for insurance companies typically run as long as 10,000 pages, he said. And of course, the requirements are different in every state.

The company intends to use the funds to expand operations and its business reach nationwide.

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