San Francisco-based insurtech platform Embroker announced Wednesday that it raised $100 million in fresh financing. The Series C, led by FTV Capital, will help the company build out its own insurance carrier.
The latest investment stands as a vote of confidence from investors who’ve taken note of the company’s rapid pace of growth. Embroker surpassed $20 million in gross written premium for the first quarter of 2021 and achieved over 100 percent retention, according to the company.
Founded in 2015, Embroker operates as a digital broker with a focus on business insurance. The company’s data-based underwriting models are used to assess risk and then create policies and premiums that can protect companies against said risk. The algorithmic-based approach reduces premiums for businesses by up to 20 percent, according to the company.
“For Embroker to truly forge a new approach to business insurance, we need to reimagine and rebuild every part of the process,” Matt Miller, the company’s CEO, said in a statement. “Even as some of the surface-level elements of insurance have become increasingly customized and digitized, the underlying legacy systems and antiquated processes endemic to this industry are needlessly complex and require a substantial overhaul.”
Embroker covers multiple lines of insurance for employers including employment practices liability, cyber and professional liability and many more.
In addition to building out its own insurance carrier, the company plans to invest in the growth of its team as it continues to scale. Embroker is now actively hiring for about seven open positions spanning its marketing, operations, product and sales teams.
With the additional capital the insurtech platform also plans to build out its secondary offering, Embroker Access. The tool enables retail and wholesale brokers to offer the company’s insurance products to their customers.
Embroker has raised $142.4 million in venture capital financing to date. Additional investors HSCM Bermuda, Gaingels and Tola Capital participated in the round, among others.
