Insuretech startup Huddle has raised $19.2 million in funding to take on industry heavyweights

Trevor Adeline/ABC via Getty Images

  • Insuretech startup Huddle has raised $19.25 million in funding.
  • The series A round was led by AirTree Ventures.
  • The platform uses machine learning and AI to assess claims, prevent fraud and automate insurance processes.
  • The startup aims to use the funding to take on traditional insurers and bad behaviour called out in the royal commission.

Insuretech startup Huddle has raised $19.25 million in funding led by AirTree Ventures.

Other investors in the series A round include Hollard Insurance, Alium Capital and SevenWest Media.

Huddle, which uses machine learning and artificial intelligence to assess claims, prevent fraud and automate insurance processes, resulting in lower costs for consumers, will use the funds to accelerate plans to take on industry heavyweights.

The move comes in the wake of the financial services royal commission in which a long list of Australian insurers admitted misconduct or conduct falling below community standards and expectations.

Co-founders and co-CEOs Jason Wilby and Jonathan Buck see this as an opportunity and want to bring Huddle’s ethical insurance products to the wider Australian market.

“The Royal Commission has, quite rightly, further highlighted the opportunity for a new model that’s open, and puts customers in control,” said Wilby.

“Huddle is on a mission to fix the issues of trust that are plaguing traditional insurers. Whilst the incumbents battle with legacy technology and outdated business models, Huddle’s new, open model is making insurance simple, with easy-to-understand cover, fair prices and Instant Claims.

“Plus there’s the added bonus that members can decide how unused premiums are put to work.”

Buck added: “This capital raise cements the future of the community-driven and AI-powered model, and will enable us to realise our vision that drives better outcomes for the entire community.”

AirTree, which has been tracking the insuretech space very closely over the last few years, says the team is a standout “on every dimension”.

“This is a very new way to think about insurance – they are attacking one of the largest and most outmoded industries and creating an experience that customers can actually enjoy,” said AirTree Ventures partner, James Cameron.

“They are using technology and a community focus to transform the experience of buying and claiming.”

This is Huddle’s second capital raise in two years, following a $6 million investment led by Hollard Insurance in 2016.

Huddle was founded in 2016. Since then the company has provided over $1 billion of insurance cover to thousands of members around Australia and is growing at more than 700% YOY. Huddle also prides itself on being one of the 230 companies in Australia to have qualified as a Certified B Corporation.

NOW WATCH: Tech Insider videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.