Highlights:
- The firm utilizes an AI-driven onboarding application to produce price quotations for individuals interested in purchasing a homeowner’s policy.
- According to a leading media house, the company assesses county records and property aerial photos for insurance applicants.
Openly LLC, a startup that offers homeowners insurance quotes using artificial intelligence, has raised USD 100 million to quicken its expansion goals.
The Gradient Ventures fund of Alphabet Inc. invests in AI companies, and several other institutional investors joined Eden Global Partners in leading the round. Openly Chief Executive Officer Ty Harris stated in a recent interview with the Boston Business Journal that the new funding will assist the startup in becoming profitable and continuing to adhere to insurance industry regulations.
Openly offers homeowners insurance policies underwritten by a Clear Blue Financial Holdings LLC subsidiary headquartered in North Carolina. These policies extend coverage to primary residences, vacation homes, and other property types. Openly proudly emphasizes that its standard insurance plan provides “above average protection”when compared to competing alternatives.
The business offers homeowners looking to purchase policy price quotes through an onboarding application powered by AI. Openly says homeowners only need to enter their names, birthdates, and addresses to receive a quote. It takes about 15 seconds to generate the price offer.
In the background, Openly’s AI software creates price quotes by fusing homeowners’ data with data from various outside sources. According to the Boston Business Journal, the company looks at county records and aerial pictures of the property a homeowner is trying to get insurance for. Furthermore, its software examines pertinent home listings.
Openly offers a range of auxiliary services in addition to insurance policies. The business has a group responsible for handling insurance claims from clients. Additionally, Openly collaborates with contractors who can assess the necessary repairs for a property after a claim is approved and then carry them out.
The business sells insurance through independent insurance brokers. In 21 states, it currently works with more than 30,000 agents, a number it hopes to increase after its most recent USD100 million funding round. According to reports, Openly plans to participate in the effort by establishing a presence in four or five more states in next year.
Additionally, the company expects to attain profitability with the aid of the capital injection. Furthermore, the investment will facilitate Openly’s compliance with insurance industry regulations. Insurance providers must maintain a minimum quantity of capital on their balance accounts in order to mitigate the risk of unforeseen financial losses.
This year, Openly is the most recent insurance technology company to raise capital. Previously, Lula Technologies Inc. raised USD 35.5 million to assist transportation companies in purchasing vehicle fleet insurance. Previously, Accelerant secured USD 150 million in financing for its insurance underwriting platform with the same name.