US InsurTech Hippo has doubled its underwriting capacity after it entered an issuer carrier relationship with Ally Financial subsidiary and a partnership with Motors Insurance Corporation.
According to Reinsurance News, the deal will see Hippo Insurance Services become the wider group’s largest managing general agent (MGA) unaffiliated program to date.
Furthermore, this deal will be the first issuing carrier relationship for Ally and is designed to allow Hippo to strengthen its underwriting capabilities and provide flexible rates.
The new relationships will launch initially in 10 unnamed states and then roll out nationally at an undisclosed date.
Hippo president Rick McCathron said, “By working with Ally, we are bringing significant growth and diversification to our business, offering Hippo’s protective insurance products to more homeowners across the country.
“Our innovative and proactive approach aligns perfectly with Ally’s customer-centric mission to serve the needs of the customer and help protect people’s financial future, which includes their most valuable financial asset: the home. We’re thrilled to be working with such a prestigious financial institution and are excited to have their support as we build the home insurance company of the future.”
Ally Financial president of insurance Mark Manzo added, “This relationship complements and diversifies the ongoing expansion of Ally’s insurance business. Hippo’s innovative model and proactive approach to helping their customers protect their most important investment align with our commitment to being a relentless ally for all things financial.
“We’re excited to build on the investment from our strategic investment arm, Ally Ventures, and support Hippo’s national growth.”
Hippo recently became a publicly-traded company following its merger with special purpose acquisition company Reinvent Technology Partners Z.
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