New York, NY, November 21, 2018 – Artificial intelligence and machine learning are disrupting every industry, including insurance. As a digital solutions company focused on the insurance industry, PolicyGenius is using these technologies to make buying insurance simpler and more accessible for customers. The company announced today that it has raised $125 million in Series E funding led by Hillhouse Capital to accelerate its expansion into new markets and product offerings. These new funds will be used to expand the company’s suite of digital insurance products and services to consumers in new geographies while continuing to invest in AI-enabled technology. The investment comes on the heels of PolicyGenius closing a $115 million Series D financing round led by SoftBank Ventures last August. This brings total capital raised by the New York-based company to $225 million.
What is Policygenius?
Policygenius is a digital solutions company focused on the insurance industry. The company’s mission is to make it simple for consumers to understand, buy, and use insurance products. Over the past nine years, Policygenius has become one of the most popular online resources for people to research and buy insurance. The company has more than 3 million users across its website and mobile app. Policygenius partners with over 150 insurance carriers and brokers to provide customers with personalized quotes and assistance with their insurance needs. In addition to its core insurance offering, Policygenius has also developed a financial planning tool to help customers plan for major life events, like buying a house or having children.
Why is Policygenius raising more funding?
Over the past two years, Policygenius has accelerated the pace of its product development and growth while also achieving profitability. The company started in the homeowners insurance market and has since expanded to include renters insurance and car insurance products. These new offerings now make up 25% of the company’s total revenue. However, Policygenius wants to accelerate this growth trajectory by expanding into new geographies and developing new product offerings. To do this, the company decided to raise another financing round to ensure that it can keep up with customer demand.
Hillhouse Capital and its connection to Alibaba
As one of the first investors in Policygenius, Hillhouse Capital is also one of its strategic partners. The investment firm is a subsidiary of the Alibaba Group and has helped Policygenius navigate the complexities of operating in the Chinese insurance market. Recently, Hillhouse Capital committed $100 million in capital to launch a joint venture between Policygenius and the China Ocean Insurance Group (CIOIC), the largest insurance company in China. This joint venture, which was also funded by Hillhouse Capital, has created a new insurance company called CICC. CICC is a digital-first insurance company that will serve customers in both China and the US. To date, CICC has issued over 100,000 policies through Policygenius’s online platform.
What’s next for Policygenius?
On top of expanding its insurance offering and growing its customer base, Policygenius is also investing in its AI technology. The company is using machine learning and data science to build more predictive and personalized features for its users. This year, Policygenius plans to launch a new product called Professional Protect. This product will provide benefits and insurance coverage for freelance workers and solopreneurs. Professional Protect will be a combination of coverage from different carriers and is expected to launch in the first quarter of 2019.
Learn more
If you’re interested in learning more about artificial intelligence, its impact on the insurance industry, or Policygenius’s new funding round, you can read the following articles: – How AI and Machine Learning Will Transform the Insurance Industry – Forbes – How Artificial Intelligence Is Disrupting the Insurance Industry – Forbes – Why AI and Machine Learning are Important for Insurance Companies – Artificial Intelligence and the Insurance Industry
Conclusion
Whenever a new technology emerges, there are always fears and misconceptions associated with it. Artificial intelligence is no different, but it’s important that companies like Policygenius are working to change the narrative around AI. For Policygenius, this means using AI to create more personalized and efficient user experiences as well as make insurance more accessible for people. And as AI continues to evolve, Policygenius will also be a key player in its growth and adoption among businesses and consumers.
