Hippo, a startup focused on providing home insurance digitally, has secured a $350 million capital investment from Mitsui Sumitomo Insurance Company.
Hippo and Mitsui Sumitomo Insurance Company plan to sign a reinsurance treaty where Mitsui Sumitomo will take on a “portion of risk” to support Hippo. Wand explained that Hippo has a treaty with about 10 different reinsurers. As the company becomes larger, the company also needs to extend the treaty, and Mitsui Sumitomo wants to participate and “take a portion of the risk on their balance sheet,” he said.
Hippo allows homeowners to get a quote and purchase home insurance online in 60 seconds or less, save up to 25% compared to traditional insurers, and obtain “smarter coverage for modern households,” according to the company.
It also offers direct integrations into loan origination systems and point of sale systems to allow borrowers to obtain homeowners insurance as part of the mortgage process.
Hippo differentiates itself from other home insurers, it says, by providing “more accurate and affordable coverage by using technology and data integrations to develop a unique profile of a customer’s property during the onboarding process.” The company actively reviews changes to a customer’s property over time, using thermal and satellite imagery and layers in AI, machine learning and public records.