HSCM-backed insurtech Embroker seeks to build its own insurance carrier

Re/insurer  Hudson Structured Capital Management (HSCM Bermuda) and MassMutual Ventures have invested in San Francisco-based insurtech to support the expansion of its business insurance platform.

Embroker has secured $100 million in its Series C funding, and plans to use the proceeds to expand into a full-stack insurtech by building its own insurance carrier.

The round was led by FTV Capital with additional investment from HSCM Bermuda and Gaingels and follow on from Tola Capital, Canaan Partners, Bee Partners, and MassMutual Ventures.

Embroker’s digital insurance products are underwritten by its insurance platform and are fully backed by A+ rated reinsurers including Munich Re and Everest Re. It applies modern data-driven underwriting models to assess risk better, and its algorithmic-based risk management reduces premiums for businesses by up to 20 percent.

“This investment round will help us make business insurance a more streamlined and radically simple experience by accelerating our progress in building many of these systems from the ground up,” said Matt Miller, chief executive officer of Embroker.

The company stated that its innovative platform and products are experiencing "substantial growth" in the market. Across all products, Embroker surpassed $20 million in gross written premium for the first quarter of 2021 and achieved over 100 percent retention.

“Embroker has proven that we can focus on a specific business segment, such as tech startups or legal services, and apply a modern approach to risk management and deliver significant value to these customers. U.S.-based venture-backed startups alone are estimated to be collectively paying upwards of $1 billion or more in premiums every year, and we’re helping them not only save money but better protect their businesses,” Miller added. “Our mission is to replicate this approach to other business segments that have been historically under-serviced by the larger insurance companies and apply advanced technology to make policies more tailored, less expensive, and easier to purchase.”

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