SiriusPoint, a Bermuda-based global insurer and reinsurer, has invested in Honeycomb, a commercial real estate insurance company that leverages technology to aid multi-family property owners find insurance coverage at low price.
SiriusPoint, which offers solutions to clients and brokers in nearly 150 countries, will serve as the lead underwriting capacity provider of the US managing general agents (MGAs).
With this latest investment round, Honeycomb has so far raised $19m.
The extra funds raised will be used to bolster its technological capabilities and expand into several states in the US.
This investment is part of SiriusPoint’s strategy to invest in and team up with MGAs and insuretech firms.
SiriusPoint chief operating officer and president of insurance and services Prashanth Gangu said: “Honeycomb is an excellent fit for SiriusPoint’s growing partnership portfolio. The Honeycomb team are taking a disruptive and entrepreneurial approach to addressing customer needs in multi-family property insurance – entering a ‘no-man’s land’ for the traditional insurance industry.
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“This is a market that is currently underserved. Commercial multi-family properties are places where many people live, work and visit and have specific insurance needs for their owners – it’s seen as too complex a risk by some insurers, or too niche by others – leaving a gap in insurance that needs to be filled.”
Serving as all-digital, AI-enabled, end-to-end insurance platform, Honeycomb offers insurance coverage to apartment building owners and condominium associations.
It enables owners of multi-family properties to leverage their mobile phone to carry out a virtual property inspection by taking photos of the assigned internal and external features of the property, and get a bindable quote immediately.
Honeycomb co-founder and CEO Itai Ben-Zaken said: “We are super excited to further enhance our great partnership with SiriusPoint who have been an amazing partner for us throughout our journey and supported us from day one.
“We appreciate the strong vote of confidence from SiriusPoint, and look forward to continuing to push the boundaries of what’s possible in real estate insurance together.”
SiriusPoint Property and Casualty (P&C) Insurance head of Americas Patrick Charles said: “It is good news for both the consumer and the insurance company. The speed and convenience of the underwriting process is the main hook for customers and the virtual inspection process should significantly reduce underwriting expenses.
“The collected data also allows Honeycomb to differentiate properties, reward better quality risks with unique discounts, and continuously improve its underwriting engine.”