Insurtech Pie Insurance secures $11m for expansion

US-based workers’ compensation insurance Pie Insurance completed an $11 million Series A funding round led by Greycroft and including participation from Aspect Ventures, existing investors Sirius Group, Moxley Holdings, and Elefund.

Founded in May 2017, Pie Insurance is targeting the small business (SMB) workers’ compensation market. The company built a managing general agent (MGA) operation and secured the necessary regulatory approvals. Pie offers an online buying process for SMBs in eight US states.

The new funds will be used to scale the company's operations and to expand geographically, as workers’ compensation is a requirement for SMBs in every state except Texas.

“Pie combines two elements that really stand out - a unique set of underwriting data and an experienced founder who was instrumental in building an online insurance company that was sold for over a billion dollars,” said Ian Sigalow, partner and co-founder of Greycroft. “They have already accomplished a lot, which is particularly noteworthy because they launched the company only a little more than a year ago.”

Pie’s business model and value proposition utilizes advanced analytics to more accurately identify risk for SMBs, removing steps from the purchase process, and often generating significant savings, according to company claims. According to its predictive model, 80 percent of small businesses are overpaying for coverage, often by as much as 30 percent.

“SMB owners are unfairly burdened by an outdated business model that requires too much of their time and effort in order to meet their insurance needs,” said John Swigart, co-founder and CEO of Pie. “We can remove these hurdles for a larger number of small businesses with this investment.”

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