Policygenius revealed that it will use its new funds to hire additional staff, as well as expand its products offerings in 2020.
Launched in 2014 by Jennifer Fitzgerald and Francois de Lame, the company helps consumers shop for a variety of insurance options, including life, home, auto, disability and renters via its online marketplace. It has $60 million in annual revenue, a 10x increase since its last capital raise in early 2017. In fact, it is the fastest-growing life insurance distributor, with $45 billion in life coverage issued to date.
"Our technology platform delivers a seamless and easy experience for comparing, buying and switching insurance, at scale, nationwide," said Jennifer Fitzgerald, CEO and co-founder at Policygenius.
She also told Bloomberg that the company isn’t looking to go public anytime soon, instead focusing on expansion. Last year, Policygenius launched a new property and casualty insurance offering, which scaled to more than $10 million in revenue in less than 12 months. The company also added about 180 new employees and opened a second headquarters in Durham, North Carolina (its first is in New York).
Insurtech companies have been popular with investors, with a recent report from Willis Towers Watson stating that total worldwide funding in the insurtech sector hit $6.37 billion in 2019, which led to the creation of five new unicorns. The data also found that property-casualty start-ups took a large share of investment over life and health companies, which is a trend that started in 2016.
“2019 was the year when individual insurtechs began to come to the fore to lead in specific parts of the market, whether in certain lines of business or in the use of particular technologies,” said Dr. Andrew Johnston, global head of insurtech at Willis Re.
The company’s recently announced $100 million in Series D funding was led by global investment firm KKR, with participation from existing major investors including Norwest Venture Partners, Revolution Ventures, Susa Ventures, AXA Venture Partners, MassMutual Ventures and Transamerica Ventures. As part of the raise, Allan Jean-Baptiste and Jake Heller will represent KKR on Policygenius' Board of Directors.