HSCM Bermuda supports Embroker’s efforts to “reimagine and rebuild” business insurance
HSCM Bermuda has participated in a series C funding for Embroker, the digital business insurance platform.
The $100 million funding round was led by FTV Capital, with Gaingels joining HSCM Bermuda, with follow-on investment from Tola Capital, Canaan Partners, Bee Partners and MassMutual Ventures.
Embroker will use the capital to expand into a full-stack insurtech by building its own insurance carrier.
All of its digital insurance products are underwritten by its own insurance platform and are fully backed by A+ rated reinsurers, including Everest Re and Munich Re.
Embroker surpassed $20 million in gross written premium across all products for the first quarter of 2021, and achieved over 100 percent retention.
Matt Miller, chief executive officer at Embroker, said the company needs to reimagine and rebuild every part of the process if it is to truly forge a new approach to business insurance.
“Even as some of the surface-level elements of insurance have become increasingly customised and digitised, the underlying legacy systems and antiquated processes endemic to this industry are needlessly complex and require a substantial overhaul,” he said. “This investment round will help us make business insurance a more streamlined and radically simple experience by accelerating our progress in building many of these systems from the ground up.”
Miller added: “US-based venture-backed startups alone are estimated to be collectively paying upwards of $1 billion or more in premiums every year, and we’re helping them not only save money but better protect their businesses.”
Mike Vostrizansky, principal at FTV Capital and Embroker board member, said: “Led by a management team with deep domain expertise, Embroker has thoughtfully taken a digital-first approach to broadening its suite of proprietary specialty line offerings and enhancing its technology infrastructure. This strategy has resulted in an accelerating growth trajectory as the company is successfully delivering on the unique needs of the vertical business segments.”
Chris Winship, partner at FTV Capital and Embroker board observer, added: “Unlike mono-line insurers that grow by volume only, Embroker has strategically built a business able to benefit from multiple levers for premium growth. They are effectively tailoring offerings to new, underserved end markets, adding new insurance lines to unlock broader coverage, and growing customers through policy expansion.”
