Hudson Structured Capital Management Ltd., the insurance-linked securities (ILS), reinsurance- and transportation- focused investment manager, has co-led another significant insurtech venture round, helping auto insurance marketplace DealerPolicy secure $30 million in funding.
Hudson Structured Capital Management Ltd., which undertakes its re/insurance business as HSCM Bermuda (HSCM), led the funding round alongside 3L Capital.
DealerPolicy, which is a leading insurance marketplace for the automotive retail sector, aims to put the $30 million in Series B funding to work in accelerating the development of its insurance platform for the auto industry and expanding its team.
DealerPolicy offers an integrated insurance solution for the automotive retail industry, enabling those selling vehicles to add insurance into the buying experience.
The insurtech company has a wholly owned agency, DealerPolicy Insurance, and a network of over 800 dealers into which it offers its insurance products.
“As car buying continues to evolve with the world around us, dealers are prioritizing fully digital, streamlined and connected experiences. Modern insurance solutions such as DealerPolicy’s FastPass™, dovetail nicely into the process and give car-buyers the value and convenience they’ve come to expect,” says Travis Fitzgerald, CEO of DealerPolicy.
“DealerPolicy has conducted extensive research into car-buyer sentiments, including access to insurance as part of the process. The results are undeniable – nearly 8 out of 10 shoppers believe that comparing insurance at the point of sale during the car-buying process substantially improves the experience. With an ever-expanding value proposition to dealers, insurance carriers and customers, we are prepared to continue investing in growth.”
White-labelling of financial products and their insertion into the buying process for consumers is not new, but DealerPolicy with its agent and network approach offers efficiencies that help to lower the cost of insurance for the end-consumer, while delivering greater profits to auto dealers as well.
It’s all about the customer experience and these startups are a prime example for how integrated insurance products can deliver results.
For Hudson Structured, DealerPolicy fits with its vision of sourcing insurance and reinsurance linked returns for its investors from across the insurance market, in an efficient manner and capitalising on areas where traditional distribution routes are being disrupted.
Hudson Structured, which was established by ex-Goldman Sachs structured finance head Michael Millette, invests in insurtech as one of the range of ways it derives insurance and reinsurance-linked returns for its investors, from across the full range of market access points.
HSCM Bermuda also recently co-led a $24 million Series A investment round for home and auto insurtech firm Branch , co-led a Series A for rideshare insurtech Buckle and participated in a $35 million Series B funding round for home insurtech company Kin Insurance.