A Bermudian-based outfit is among the contributors to a $100 million round of funding by Embroker, the digital business insurance platform.

San Francisco-based Embroker said the Series C funding round was led by FTV Capital with additional investment from HSCM Bermuda and Gaingels and follow on from Tola Capital, Canaan Partners, Bee Partners, and MassMutual Ventures.

HSCM Bermuda is the reinsurance and ILS investment management business arm of Hudson Structured Capital Management Ltd, the asset manager with a focus on the re/insurance and transportation sectors.

Embroker said it plans to utilise the new funding to expand the company into a full-stack insurtech by building its own insurance carrier.

Matt Miller, chief executive officer of Embroker, said: “For Embroker to truly forge a new approach to business insurance, we need to reimagine and rebuild every part of the process.

“Even as some of the surface-level elements of insurance have become increasingly customised and digitised, the underlying legacy systems and antiquated processes endemic to this industry are needlessly complex and require a substantial overhaul.

“This investment round will help us make business insurance a more streamlined and radically simple experience by accelerating our progress in building many of these systems from the ground up.”

Embroker said its innovative platform and products are experiencing substantial growth in the market and driving industry-leading customer satisfaction.

Across all products, Embroker said it surpassed $20 million in gross written premium for the first quarter of 2021 and achieved more than 100 per cent retention.

It said this latest funding announcement will provide continued investment in Embroker Access, a critical part of the company’s platform that allows retail and wholesale brokers to offer Embroker’s digital insurance products to customers.

Mr Miller said: “Embroker has proven that we can focus on a specific business segment, such as tech start-ups or legal services, and apply a modern approach to risk management and deliver significant value to these customers.

“US-based venture-backed start-ups alone are estimated to be collectively paying upwards of $1 billion or more in premiums every year, and we’re helping them not only save money but better protect their businesses.

“Our mission is to replicate this approach to other business segments that have been historically under-serviced by the larger insurance companies and apply advanced technology to make policies more tailored, less expensive, and easier to purchase.”

Embroker said it applies modern data-driven underwriting models to assess risk better, and create policies and premiums that protect companies against that risk. This unique algorithmic-based risk management reduces premiums for businesses by up to 20 per cent.

It said the Embroker experience is both digital when customers need the ease of technology and personal when they want the guidance of experts.

The company said all of Embroker’s digital insurance products are instantly underwritten by Embroker’s insurance platform and are fully backed by A+ rated reinsurers including Munich Re and Everest Re.

Embroker said it is transforming commercial insurance by making it radically simple for businesses to get the right insurance at the best price.

The company said it focuses on industry-specific coverage for the most complex and inefficient lines of insurance, such as directors and officers, employment practices liability, cyber, and professional liability.

Embroker said it uses predictive modelling powered by proprietary technology to fully automate underwriting and make the buying process simple, fast, and more affordable.

Founded in 2015, Embroker said it has raised more than $140 million in funding from leading fintech and insurtech investors.