Pie Insurance, a leading tech-enabled provider of workers’ compensation insurance to small businesses, has raised $315m in Series D funding.
The round was led by Centerbridge Partners and Allianz X, the digital investments arm of Allianz Group.
White Mountains Insurance Group also joined as a new investor. Previous investors Gallatin Point Capital, Greycroft, Acrew Capital and others also participated in the round.
Pie aims to leverage technology to transform how small businesses buy and experience commercial insurance, with the goal of making it affordable and “as easy as pie”.
The InsurTech said its intense focus on granular, sophisticated pricing, and data-driven customer segmentation enables it to match price with risk accurately across a broad spectrum of small business types, which allows the company to offer more affordable insurance to small business owners.
The funding sees Pie’s total capital raised double to over $615m and follows an “incredible period of growth” for the company. Pie has more than doubled its gross written premiums and its number of policyholders and partners.
The InsurTech said the raise will allow it to continue providing simple and affordable commercial insurance to America’s 32.5 million small businesses.
The funds will be used to support Pie’s growth initiatives that directly impact its small business customers, including expanding into new lines of business, fully transitioning to a full-stack carrier and further innovating upon its advanced proprietary pricing algorithms.
John Swigart, co-founder and CEO of Pie, said, “This round of financing is monumental in more ways than one… It’s no secret that growth-stage startups, and specifically InsurTech’s, are facing a challenging fundraising environment. However, Pie’s ability to grow rapidly while still focusing on delivering strong unit economics and sustainable loss ratios, is proving to be a key differentiator. Pie is disrupting the highly fragmented small business commercial insurance market through our proprietary technology which more accurately prices and underwrites insurance risks.
“We believe the InsurTech 2.0 phase of this industry-wide transformation will be built by companies like Pie that leverage their technology to ‘do the insurance better’ and deliver superior traditional insurance metrics along with a delightful customer experience.”
Pie recently partnered with commercial insurance platforms Bold Penguin, Talage, and Tarmika. Also earlier this year, the company expanded its footprint to Alabama and Oregon in the US.
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