Insurtech Kin raises $35m funding with HSCM backing to expand in US
Chicago-based insurtech start-up Kin Insurance has raised $35 million Series B funding led by Commerce Ventures with participation from Hudson Structured Capital Management (HSCM Bermuda).
Other investors included Flourish Ventures, QED, Alpha Edison, Allegis NL Capital, Avanta Ventures, venture arm of CSAA Insurance Group, August Capital, the University of Chicago via its Startup Investment Program, among others.
The Series B round brings Kin’s total funding to date to $86 million. The investment comes less than a year after the start-up received regulatory approval for the Kin Interinsurance Network (KIN), its reciprocal exchange – a form of insurance company that shares underwriting profits with customers.
With its latest round of funding, the company plans to expand its solution, piloted in Florida, to homeowners across the US, starting with states most affected by severe weather. Kin offers tech-driven home insurance in the catastrophe-prone region.
“We believe in creating meaningful change for homeowners who need our solution the most,” said Sean Harper, Kin’s CEO and co-founder. “Since we established our carrier last summer, we have been able to innovate much faster because we depend less on legacy insurance infrastructure.”
Dan Rosen, founder of Commerce Ventures, said: "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. 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.”
Andrew Sagon, vice president with HSCM Bermuda, added: “We are excited to increase our investment in Kin and to continue to support the company’s mission to provide simple and affordable insurance coverage to homeowners. Kin’s leadership team has done a commendable job of transferring structural efficiency gains to its customers in the form of more affordable coverage, and we are thrilled to support Kin’s efforts as the business enters its next phase of growth.”
