Surround Insurance, an InsurTech passionate about changing the insurance experience for consumers in their 20s and 30s, has raised $2.5m in seed funding.
The round was led by MassMutual through the MM Catalyst Fund.
New investor Aperture VC also participated in the round along with existing investors Newark Venture Partners and Cameron Ventures.
Co-founded by insurance veterans Jay Grayson and Kate Terry, Surround said it addresses a $10bn opportunity for consumers getting started with insurance.
Surround has designed its experience around transition moments for customers like leaving the parental nest for college, establishing life in the city, or making a first-time car purchase.
Surround’s initial set of products are designed around emerging risks such as driving rented or shared cars and freelancing for extra income.
The company strives to help first-time insurance purchasers with in-the-moment advice and products built for an asset-lite lifestyle, thereby reinventing the traditional insurance experience. The company said its most popular product is the Drive-Rent bundle which includes portable auto insurance for non-car owners plus apartment insurance.
Surround said that funds from the round will be used to expand Surround’s product and distribution footprints.
Jay Grayson, CEO and co-founder of Surround, said, “Lifestyles of young adults in their 20s and 30s are changing rapidly and dramatically. They are moving, living, and working in ways never imagined by traditional insurance, and we’re helping them navigate a confusing and complicated set of risks. Oftentimes, our customers are buying insurance for the first time, so we have the perfect opportunity to win them early and then keep them for life.”
Jason Allen, portfolio manager, impact investments at MassMutual, added, “Jay and Kate are focused on solving problems for consumers who need insurance that’s built around their lifestyle instead of their assets – insurance that isn’t easily accessible today. MassMutual’s relationship with Surround extends back to our collaboration through the MassChallenge FinTech program, and this investment represents our continued confidence in Surround’s future and vision.”
Earlier this year, COVU, an AI-enabled digital platform for insurance agencies, raised $10m in seed funding to launch its product.
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