Hippo Holdings Inc (HIPO.WS) says it aims to improve homeowners’ insurance by leveraging customer data in order to make it quicker and simpler to obtain coverage. This, according to the Insurtech firm’s CEO.
As reported by Reuters, Hippo is valued at $5 billion and went public via a blank-check company on Tuesday (August 3, 2021). The insurance tech firm is notably among several others in its sector that’s trying to acquire business from more established insurance service providers.
Company CEO Assaf Wand stated that they aim to “to double down on tech, data and more engineering and more capabilities.”
Hippo’s sales goals or objectives appear to be similar to firms such as Geico Corp and Progressive Corp, which have helped with making the car insurance sector a lot more competitive. In order to achieve this, Hippo intends to create algorithms that are able to speed up policy quotes and develop new products, Wand revealed.
Hippo is backed by Silicon Valley professionals Mark Pincus and Reid Hoffman. Established in 2015, the company provides coverage for renters and has products for other homeowner needs that insurers usually do not cover, like services related to upkeep, security, repairs as well as potentially selling the place.
For instance, Hippo offers sensors that go off when there’s a water leak under a sink, so a plumber may be contacted to prevent damages. That should assist the homeowner and also lower the total amount Hippo would need to pay for claims. Meanwhile, outside motion detectors are able to prevent potential burglaries.
Hippo has gone public via Reinvent Technology Partners, its special purpose acquisition company or SPAC, and began trading on August 3, 2021. During morning trading hours, the firm’s shared surged over 2% at around $10.
The Insurtech’s written premiums increased from $142 million back in 2018 to $405 million last year, the firm’s management revealed while noting that it’s now expecting $544 million in 2021 and $2.28 billion within the next 4 years.
Other newly-listed Insurtech companies such as Lemonade Inc and Porch Group Inc have seen an increase in their share prices as well.
Notably, Hippo acquired property and casualty insurance firm Spinnaker Insurance Co during 2020, obtaining licenses in 50 US States. At present, the company sells in 37 states, which means it is able to reach around 80% of American property owners and is on track to grow its operations by 90% in 2021.