Insurance is a massive industry with an enormous customer base. Despite that, it is one of the industries that has been the slowest to modernize. Clients are frustrated, and things are not as smooth and easy as they should be. Newfront plans to change that with their dedicated approach to making insurance better. You can read more about the company and their plans for the future in the announcement below.
The last century has brought constant change, evolution, and innovation. Nearly every facet of our society and economy has changed, in many ways for the better.
Yet the system that allows society to transfer and mitigate risk — a bedrock of modern society — has not kept up with the times. Insurance is a trillion dollar industry that powers every facet of our economy and still runs on pen and paper. Very few APIs, structured data formats, or digital interfaces exist in this industry. Clients fill out mountains of paperwork, have little visibility into the products they buy, and are left to wonder whether their claims will be covered. Skilled insurance professionals spend their careers honing their craft, only to toil over paperwork and administrative tasks. Underwriters spend countless hours parsing through submissions and often do not have the ability to review everything they receive.
At Newfront, we are changing this. By building the modern platform for the industry, we are offering clients, colleagues, and trading partners a new path forward — one defined by transparency, insights, and ease of use. Today I’m excited to share that we closed a $ 200m Series D to further our mission. This investment comes from Goldman Sachs, B Capital, existing investors Founders Fund, Meritech Capital, Y Combinator, Index Ventures, XYZ, Remove Ventures, Bloomberg Beta, PruVen Capital, Propel, Altai, and new investors including Tony Xu CEO of Doordash and Vetamer . This investment values Newfront at $ 2.2bn and reaffirms our commitment to investing in technology, service and resources, and geographic expansion. We will also explore building bespoke insurance products to meet the evolving needs of our clients.
The round comes only 7 months after our merger that valued the combined company at $ 1.35b and serves as a strong validation of our approach. In a short time, we not only grew our enterprise value by nearly a billion dollars but we also:
- United as one company, with a common set of values, mission, and vision
- Launched a new client portal
- Released a new service team dashboard
- Welcomed 200 new employees from leading technology companies like Airbnb and Lyft and large insurance brokerages like Hub and Marsh
- Brought on numerous clients across technology, life sciences, construction, real estate, maritime, aviation, non-profits, and agriculture while achieving profitability
- Despite the progress, we believe our greatest days lay ahead. Rarely does the right team come together at the right time in a market ripe for change
If you are interested in modernizing this industry for clients, insurance professionals, and trading partners, please reach out.
The original announcement can be found on Newfront’s site.