Insured losses from wildfires, hurricanes and other climate-induced natural disasters reached $137 billion in the US last year, and such losses are projected to climb even greater heights this year. Many insurers are declining to offer or renew coverage in high-risk areas, such as Florida and California (see, “LA wildfires push California’s insurance market to the brink”).
“Insurance is a critical safety net, but it’s disappearing just when people need it most,” said Sean Harper of Kin, which has designed a direct-to-consumer insurance model for underserved homeowners. The model uses data and expert analysis to better assess risk profiles of specific homes and offer customized coverage.
By eliminating the need for external agents, the Chicago-based company is able to reduce insurance premiums for homeowners.
Insurtech
Kin says its solution covers more than half of the total addressable market, with policyholders in 13 states paying over $600 million to insure more $100 billion of home assets.
A $50 million Series E equity round, co-led by QED Investors and Activate Capital, will help the company “expand in markets most affected by natural disasters in a way that’s sustainable, scalable and customer-focused,” said Harper.
A $200 million line of credit led by Wellington Management will help pay off $145 million of existing debt. Kin’s “not just writing policies,” said Activate’s Eric Meyer, “they’re offering a vital financial service who need it most.” The Series E round values Kin at $2 billion.
