Insurtech Kin reveals major expansion after $1bn Shark Tank SPAC deal
Kin Insurance, which is set to go public via a merger with ‘Shark Tank’ guest judge Matt Higgins’ special purpose acquisition company Omnichannel, has revealed a major expansion in the US by acquiring an insurance carrier with licences in 43 states.
Kin is a direct-to-consumer digital insurer focused on the homeowners market. Its planned $1.03 billion business combination with Omnichannel Acquisition Corp is expected to close in the first quarter of 2022.
The start-up, which currently operates in Florida, Louisiana and California, has acquired an inactive insurance carrier that holds licences in 43 US states, gaining access to a $110 billion home insurance market.
The newly-acquired carrier, to be renamed the Kin Interinsurance Nexus, will enable Kin to continue its expansion with a focus on serving the growing number of catastrophe-prone states where homeowners need a new option for coverage.
The acquisition builds upon the Kin Interinsurance Network, a reciprocal exchange where customers, through their premiums, insure other members and share in the underwriting profits when there are few losses. Kin recently announced that 94 percent of the $91 million it has generated year-to-date in Total Managed Premium was written through that carrier.
The start-up expects to announce its entry into several new states in the first half of 2022.
“ Kin's advantages are most relevant in the 40% of the country that is currently catastrophe exposed, including some of our most populous states,” said Sean Harper (pictured), chief executive officer of Kin. “These new licences, combined with our best-in-class technology, will make expanding into those states and offering new products relatively easy.”
Angel Conlin, chief insurance officer, added: “This was an important step in bringing the future of insurance to homeowners across the country. Because of our efficient technology and direct-to-consumer model, we’ll be able to provide affordable pricing and essential coverage to vastly more people.”
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