Hippo Enters Commercial Insurance Market With Homeowners Association Product
Home insurtech Hippo is jumping into the commercial insurance market.
The California-based managing general agency startup said its expansion will focus on “targeted commercial insurance” customers. Its first product in the space is a tailored homeowners association (HOA) product. That product features data-driven underwriting, satellite and aerial imagery, and consideration for the specific HOA and board members.
Rick McCathron, Hippo’s president, said that the company’s HOA product is designed to address what Hippo sees as a lack of cohesive coverage options in the sector and “modernize the commercial insurance experience while preserving the individual communities’ unique coverage and risk needs.”
Hippo’s expansion into commercial insurance comes after the company disclosed plans earlier this year to hit the public markets by merging with a Special Purpose Acquisition Company. The startup will be acquired by Reinvent Technology Partners Z in a deal that values the company at $5 billion. Initial plans called for closing the deal in mid-2021.
Initially, the HOA product is available in Arizona, but will be expanded to Nevada, Oregon, Utah, Colorado, Michigan, Illinois and Tennessee later this year.
The MGA plans to launch additional commercial programs in the coming months targeting condominium associations and single-family rentals.
Hippo added it is also working to develop added offerings that will include community services and smart devices to help boost protection for commercial customers.
According to Hippo, its HOA coverage will offer higher limits for items not included in traditional personal or traditional commercial lines cover, such as pools, landscaping, private roads, retaining walls and elevator collision. Package options also include fidelity, inland marine, data breaches, general liability, combined directors and officers and employment practices liability, hired and non-owned auto liability with physical damage coverage, and available excess liability covering underlying coverage parts.
Source: Hippo