Gabi, a California-based insurtech startup, announced this week it secured $9.5 million during its Series A round, which was led by Canvas Ventures, with participation from Correlation Ventures, Northwestern Mutual Future Ventures, Securian Ventures, and other existing investors.
Founded in 2016, Gabi stated it has developed intelligent algorithms and data mining tools to find customers the best personal insurance rates. The company currently offers a free app to manage customer’s insurance. It reviews current policies and find customers a better deal and advise them on the right coverage. It is also licensed by the CA Department of Insurance. The company reported:
“We’re bound and determined to create a better insurance buying experience for you that’s always gratifying, simple, personal, lightning fast and yes, free. Your life is ever-changing, and your insurance needs are, too. We’re here to guide you through the world of personal insurance and empower you to make confident decisions about your insurance as your needs change over time. We’ll work tirelessly to arm you with the knowledge you need to protect your most loved possessions today, tomorrow, and always.”
Hanno Fichtner, Founder and CEO of Gabi revealed to TechCrunch:
“When you sign up, for insurance, you buy it at some point and then you forget about it for like six years. During that time, you are overpaying lots because you are not getting the cheapest rate and the best coverage. That’s due to changes in the insurance rate, changes in your personal life situation. That’s why people are overpaying, we calculated [consumers are overpaying around] $50 billion in insurance premiums per year. We tried to reduce that amount with technology.”
Gabi previously secured $2.6 million in seed funding this past summer. The $9.5 million from the latest funding round will go towards the continued growth of the company.