Washington DC-based worker compensation insurance business Pie Insurance has raised a $4.3m seed funding round.
Contributions to the round came from firms including Sirius Group, Moxley Holdings and Elefund.
Pie Insurance helps SMBs increase transparency and make more informed buying decisions for worker’s compensation. The company’s initial offering is an interactive Price Predictor tool to help a business understand how much they should be paying for the compensation.
The current platform uses algorithms to help find the right prices, with the company’s analytics showing around 65 per cent of SMEs over pay on worker compensation. Next year the company plans to launch its own ‘A’ rated insurance policies.
Pie Insurance CEO John Swigart said, “The SMB market is often overcharged and underserved when it comes to meeting their commercial insurance needs. The traditional high-touch approach agents and underwriters use in commercial lines leads to high prices and a protracted customer experience.
“Yet, the profitability in this sector indicates that small accounts are subsidizing larger accounts at most insurance companies. By focusing exclusively on small businesses with a digitally enabled solution, Pie will solve this problem at scale.â€
The North America dominance of the InsurTech sector has been declining YoY since 2014, with last year it having fallen to 57.3 per cent of all global investments.
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