US InsurTech focused on the home insurance market Hippo has become a publicly traded company following its merger with special purpose acquisition company (SPAC) Reinvent Technology Partners Z.
The Israeli-founded company, which has a $5bn valuation, has raised $700m, with the most recent round being completed in November 2020. Founded in 2015 by Assaf Wand, who serves as CEO, and Eyal Navon, VP of Technology, the company is backed by Silicon Valley entrepreneurs Reid Hoffman and Mark Pincus. It offers coverage for renters and has products for other homeowner headaches that insurers traditionally do not cover, such as upkeep, security, repairs and eventually selling the place.
For example, Hippo provides sensors that chirp when water leaks under a kitchen sink, so a plumber can be called to prevent serious damage. That helps the homeowner, but also reduces the amount Hippo would have to pay out in claims. Similarly, outside motion detectors can help prevent burglaries. Hippo now plans to develop algorithms that speed up policy quotes and create new products.
Hippo’s total written premiums grew from $142m in 2018 to $405m in 2020, the company said. It forecasts $544m this year and $2.28bn by 2025.
Hippo is a direct competitor of another Israeli-founder InsurTech company, Lemonade, which has been traded on Wall Street since last year and is currently valued at $4.4bn.
Hippo bought property and casualty insurer Spinnaker Insurance Co last year, gaining licenses in all 50 US states. It currently sells in 37 states, reaching about 80% of US homeowners and expects to expand to 90% this year.
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