Here’s the 10-page Series A pitch deck used by Honeycomb, a startup that wants to revolutionize the $26 billion market for multifamily property insurance
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- Honeycomb is a startup looking to disrupt the $26 billion multifamily-property insurance market.
- Instead of costly physical inspections, Honeycomb uses AI to analyze data and price policies.
- The company raised $15.4 million in Series A funding with this pitch deck.
A veteran of the online-insurance world is looking to revolutionize the way the industry prices risk for commercial properties with the help of artificial intelligence.
Insurance companies typically send inspectors to properties before issuing policies to better understand how the building is maintained and identify potential risks or issues with it. It’s a process that can be time-consuming, expensive, and inefficient, making it hard to justify for smaller commercial properties, like apartment and condo buildings.
Insurtech Honeycomb is looking to fix that by using AI to analyze a combination of third-party data and photos submitted by customers through the startup’s app to quickly identify any potential risks at a property and more accurately price policies.
“That whole physical inspection thing had really good things in it, but it wasn’t really something that is scalable and, it’s also expensive,” Itai Ben-Zaken, Honeycomb’s cofounder and CEO, told Insider. “The best way to see a property right now is Google street view. Google street view is usually two years old.”
On January 18, Honeycomb announced a $15.4 million Series A funding round led by Ibex Investors. Returning investors Phoenix Insurance, Distributed Ventures, IT-Farm, and Sure Ventures all increased their stakes for the round. New investor SiriusPoint, one of the largest reinsurers in the world, is also Honeycomb’s lead reinsurer. The company has raised $19 million to date.
Ben-Zaken helped drive some of the initial mobilization of the online-insurance industry as a director at QuinStreet, which powers marketplace sites such as Insurance.com and Carinsurance.com. After watching other sectors of the industry move online and streamline their operations, Ben-Zaken thought that insurance for multifamily properties was prime for digitization.
The market is an underserved one, Ben-Zaken said, as other insurance firms are more likely to focus on larger buildings with policies that can bring in more money and justify the time and money spent on inspections.
“It’s not that the big carriers couldn’t innovate, or it’s not that other disruptors couldn’t have entered earlier. It’s more of the natural play of insurtech that a lot of the really big markets got disrupted first and got improved and streamlined first, especially in the personal line space,” he said. “As time goes by, people say, ‘It’s 2022, I want to be served like others are being served,’ and that’s where you start seeing more innovation coming into areas that are a bit more specialized or that might require a little bit deeper type of innovation.”
Ben-Zaken says that as the company continues to obtain more data and improve its machine learning, Honeycomb hopes to be able to build additional layers of depth that will allow it to price complex risk more accurately and operate in states where weather and climate change pose bigger threats to properties, like Florida.
Honeycomb currently operates in Illinois, Arizona, Michigan, and Ohio, but plans to expand to ten additional states before the end of 2022, including California, Texas, and Pennsylvania. After writing its first policy in June 2021, the company projects it will have over $1 billion in insured assets by April 2022.