Worker compensation underwriter Insurate has secured $4.5m from a seed funding round led by HSCM Ventures.
The round also saw participation from Foundation Capital, Revolution’s Rise of the Rest Seed Fund, Clocktower Technology Ventures, Sure Ventures and a range of angel investors. HSCM Ventures partner Adrian Jones will also join the Insurate board as part of the investment.
Founded in 2019, Nebraska-based Insurate is an InsurTech provider, wholesaler and managing general agency that uses data science to create new occupational insurance product for the industrial workforce in the US. Through the use of data science and predictive analytics, the firm identifies companies that are statistically safer than average and rewards businesses with access to new products and significant savings.
Insurate markets the Safe-Tier Index which aims to use the proprietart data to identify safe businesses and help in pricing insurance.
Insurate CEO Joe Mcllhon said, “Many small industrial businesses take safety seriously, but they are penalized up to 95% in the pricing of work comp based on perceptions that their work is dangerous. We are bringing data intelligence to discern safe from unsafe, which we combine with human intelligence, to bring fair pricing to safety-conscious industrial companies in the $22B high risk segment of the statutory work comp market.
“We are building a future where there is a win-win-win relationship between the policyholder, the agent, and the insurance carrier. We are aligning fairness, transparency, and value to create the ultimate customer acquisition and retention platform for the trusted partners of high hazard companies, the independent agents.”
Adrian Jones added, “The Insurate team is reimagining a large but difficult segment of workers’ compensation using proprietary data and marketing channels. Workers’ compensation insurance is often priced with backwards-looking experience modifiers, which are not statistically credible for companies with few employees in hazardous segments. Insurate has built partnerships with large insurers, data sources, and marketing channels to benefit businesses that take worker safety seriously.”
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