Disruptor Huddle raises funds to target ‘stagnant’ industry
Insurtech disruptor Huddle, which offers motor, travel and home products underwritten by Hollard, has raised $19.25 million to accelerate a growth strategy focused on “transforming the stagnant insurance industry”.
The capital raising was led by investment firm AirTree Ventures alongside Hollard, Alium Capital and SevenWest Media.
Huddle uses machine learning and artificial intelligence to assess claims, prevent fraud and automate insurance processes. The technology enables members to get same-day payments or replacement items approved online in seconds, the company says.
“This capital raise cements the future of the community-driven and AI powered model, and will enable us to realise our vision that drives better outcomes for the entire community,” co-CEO Jonathan Buck said.
The insurance platform, which two years ago completed a capital raising of $6 million led by Hollard, says it now provides more than $1 billion of insurance cover to thousands of members and is growing 700% year on year.
“The royal commission has, quite rightly, further highlighted the opportunity for a new model that’s open and puts customers in control,” co-CEO Jason Wilby said. “Huddle is on a mission to fix the issues of trust that are plaguing traditional insurers.”
Huddle has a strong social and environmental focus and in July said it was donating $5000 to each of three charities under a Giveback program, which involves sharing surplus profit with causes its policyholders support.
Car insurance policies include carbon credits that offset emissions and investment funds are kept out of fossil fuels and invested in companies to have “a positive impact on the planet, people and animals”.
AirTree Ventures partner James Cameron said the firm had tracked the insurtech space closely over the last few years before investing in Huddle.
“They are using technology and a community focus to transform the experience of buying and claiming,” he said.