Insurance technology company Kin Insurance has raised $35m in a Series B financing round to support the countrywide rollout of Kin Interinsurance Network (KIN) in the US.
KIN, which secured regulatory approval and was piloted in Florida last year, is an insurance carrier and reciprocal exchange owned by its customers with share in the underwriting profit.
With the latest financing, total funding secured by the company has reached $86m.
The round was led by Commerce Ventures with participation from Hudson Structured Capital Management, Flourish Ventures, QED, Alpha Edison, Allegis NL Capital, Avanta Ventures, August Capital, and the University of Chicago through its Startup Investment Programme among others.
Kin CEO and co-founder Sean Harper said: “We believe in creating meaningful change for homeowners who need our solution the most.
“Since we established our carrier last summer, we have been able to innovate much faster because we depend less on legacy insurance infrastructure.”
Kin is said to utilise its proprietary platform to develop and launch new products in as little as a week, price risks in real time, and ingest more data than competitors.
This enables the company to minimise general and administrative expenses, which is said to constitute almost 15% of premiums at legacy homeowner’s insurance companies.
Furthermore, the company is also said to sell its products directly to consumers, eliminating the cost for outside agents.
Commerce VenturesfounderDan Rosen 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.”