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Honey Insurance coverage launches with $15.5M AUD, the most important seed spherical ever for an Australian tech startup

When Richard Joffe moved his household to Australia in 2019, he mentioned making use of for dwelling insurance coverage “was like touring again in time 30 years.”

“I discovered the sign-up course of painful, the wonderful print was complicated and the insurance coverage firm was completely reactive, not proactive. They by no means contacted me other than my renewal,” he instructed TechCrunch. Joffe, who based parking sensor platform Park Assist and jobs platform Stella.ai in the US, started researching and located many individuals in Australia shared the identical frustrations. This was the impetus for him to discovered Honey Insurance, which launches in the present day with $15.5 million AUD (about $11.9 million USD), the most important seed spherical ever raised by a tech startup in Australia, according to Crunchbase data.

The funding was led by institutional traders RACQ (the insurer that additionally underwrites Honey Insurance coverage), PEXA, Metricon, ABN Group, Mirvac, AGL, SFG and Apex Capital. Particular person traders embrace Zip founder and international CEO Larry Diamond; Afterpay co-founder and CEO Anthony Eisen; former MEBank CEO Jamie McPhee; former Corelogic CEO Graham Mirabito; Airtasker co-founder and CEO Tim Fung; and former Information Corp Australia and Foxtel CEO Peter Tonagh.

The capital can be used on hiring, with plans to fill 80 positions over the subsequent 12 months, and analysis and growth.

As Subsequent Insurance coverage makes its first acquisition, insurtech seems energetic

Honey Insurance coverage is underwritten by RACQ, considered one of Australia’s largest insurance coverage suppliers, and affords dwelling, contents and landlord protection. Prospects get $250 AUD value of sensible sensors to watch for the highest three dangers to houses: flooding, fireplace and theft. For instance, the sensors search for issues like leaky water pipes, smoke and open storage doorways. Joffe mentioned half of insurance coverage claims are avoidable and the sensors assist stop incidents. As an incentive, Honey Insurance coverage clients get 8% off their premiums if their sensors are switched on.

The sign-up course of for Honey Insurance coverage can be designed to be easy. Joffe mentioned clients should buy insurance coverage in as little as three minutes and the corporate avoids utilizing complicated jargon. Over the long-term, Honey Insurance coverage will even use publicly accessible info and satellite tv for pc information to robotically replace insurance policies if a buyer makes adjustments to their dwelling, like a brand new extension or pool.

Joffe mentioned one other downside in Australia is underinsurance, which affects about four out of five Australians. Final yr, 183,000 dwelling claims have been declined or withdrawn, and the common declare dimension was $8,400, up 16% from the yr earlier than. Because of this, annually clients must pay a complete of $1.5 billion out of pocket.

To handle underinsurance, Honey Insurance coverage has taken steps like a 30% security margin for a buyer’s sum insured and 4 instances the standard dwelling workplace protection, to the worth of $20,000.

“We’ve much more electronics in our homes than 20 years in the past, and we work much more from dwelling than earlier than COVID — it is sensible your insurance coverage coverage ought to take this into consideration,” Joffe mentioned.

In a press release, David Carter, CEO of RACQ, mentioned, “Investing in Honey Insurance coverage is a chance to share within the innovation and enhance the dimensions of our insurance coverage portfolio to learn our 1.8 million members and their communities.”

Insurtech startups are leveraging speedy development to boost large cash