Insurate raises $4.5 million
Insurate, “the data science-based underwriter providing fair and transparent workers compensation solutions” to high hazard small/mid-market companies, announced a $4.5 million seed round led by HSCM Ventures, the venture capital arm of Hudson Structured Capital Management. Joining the round are Foundation Capital, Revolution’s Rise of the Rest Seed Fund, Clocktower Technology Ventures, Sure Ventures, and several angel investors.
Founded in 2019 by Joe McIlhon, a former independent agent and 17 year veteran of workers’ compensation insurance, Insurate has developed a Safe-Tier Index, a blend of OHSA history, statistics, and claims history, to identify safe businesses and help in pricing insurance. Insurate’s solutions are offered in partnership with Key Risk (a Berkley Company), Encova, and several additional workers’ comp insurers. Insurate is currently in market, and average policy savings to date have been 24% without applying maximum allowable credits.
“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. 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.” – Joe McIlhon, CEO of Insurate.
“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.” – Adrian Jones, partner at HSCM Ventures, who joins Insurate’s Board of Directors.