Insurtech Branch conducts another round of layoffs

After laying off 186 employees last June, insurance startup Branch has made another round of layoffs that impacted 85 employees, according to our sources. A Branch spokesperson refused to disclose the number of employees who were let go, adding that our figure overstates the impact. The spokesperson shared the following email statement with Coverager:

“Persistent inflation has posed a significant challenge for home and auto insurance companies such as ours and as stewards of our members’ capital, we need to meet the moment with a sound and responsible plan for our members, employees, and investors. That’s why today, we’ve made the incredibly difficult decision to reduce the size of our team.

This decision was made to ensure the strength of Branch’s business during these economically turbulent times, but makes parting with valued individuals no less difficult. We are working to ease the transition of affected employees in their next career step, including a severance package, two months of paid health insurance continuation through COBRA, career placement services with a dedicated coach, and an extended post-termination exercise period for vested options.

Branch is a company that makes big bets; we believe that we can help restore insurance to its original intent of being a force for communal good. While this is a moment of loss and reflection, we’re equally focused on the opportunity that lies ahead–a future where insurance is easier to get, better, and more affordable for all.”

Late last year, we reported that Branch was able to secure more funding but the startup hasn’t made an official announcement.

Branch Insurance Exchange, which is managed by Branch, reported a net underwriting loss of $70.6 million as of September 30, 2023.