Digisure Raises $13.1M to Revolutionize Mobility Insurance

DigiSure Secures $13.1 Million to Revolutionize Digital Insurance

DigiSure, an innovative digital insurance provider specializing in modern mobility solutions – including peer-to-peer marketplaces – has officially emerged from stealth mode. The company announced a $13.1 million pre-Series A funding round to fuel its expansion.

These funds will be allocated towards bolstering the team with over 50 new hires. This includes roles in engineering, data science, business development, insurance, and compliance. DigiSure also intends to broaden its reach into new industry sectors and extend its operations into the European market.

AI-Powered Risk Assessment for Vehicle Rentals

Founded in 2018, DigiSure has developed a core competency in leveraging AI and machine learning to analyze large datasets in real-time. This capability allows for a more precise risk evaluation and the provision of fairer, more accurately priced liability insurance for vehicle renters.

Currently, DigiSure collaborates with 12 clients, including prominent companies like EagleRider, Envoy, and Fetch. The company differentiates itself by considering factors beyond conventional credit scores and driving records to deliver personalized insurance quotes.

“We screen all individuals seeking to rent and operate vehicles, preventing potentially harmful actors from accessing them,” explains Mike Shim, DigiSure’s co-founder and CEO. “We then provide insurance coverage to both the operator and the renter.”

Addressing Inefficiencies in the Property and Casualty Insurance Market

The U.S. property and casualty insurance industry represents a substantial $700 billion market. Shim attributes a significant portion of this cost to outdated screening processes that allow high-risk individuals to slip through the cracks, resulting in damages.

Traditional auto insurance providers typically base quotes on statistical averages, considering factors like age, gender, education, location, driving history, credit, and vehicle details. However, Shim notes that underwriting in the vehicle rental sector is often limited or entirely absent.

“This presents a significant opportunity to enhance risk management quality through more sophisticated pricing models,” Shim states. “These models can lead to improved conversion rates and reduced overall losses.”

The DigiSure Protection Suite: A Comprehensive Approach

DigiSure’s Protection Suite incorporates traditional underwriting factors alongside renter transaction history and access to external data sources not typically available to standard insurance companies.

The suite features AI-powered identity verification utilizing biometric technology, advanced fraud detection, credit checks, and integration of driving history and telematics data.

This data is then processed through proprietary machine learning algorithms, continuously refining the accuracy of real-time insurance quotes. For instance, the data science team might identify a correlation between rider height and motorcycle seat height as a predictor of low-speed tip-overs, leading to model improvements.

“We construct a composite risk profile for each user and continually refine that profile over time,” Shim elaborates. “Our technology is building a next-generation underwriting model for next-generation mobility.”

Rapid Screening and Dynamic Pricing

DigiSure can complete screenings and generate a quote in seven seconds or less. At the point of sale, such as during an RV rental checkout, the platform offers a dynamically priced, bundled insurance product, creating a seamless, real-time experience.

While DigiSure is a relatively new entrant, Shim recognizes the potential for growth. The conventional vehicle insurance landscape isn’t designed for emerging mobility models like peer-to-peer rentals – DigiSure’s current focus – or shared micromobility, which the company views as a promising future market.

“Insurance companies haven’t been adequately serving mobility customers, struggling to keep pace with evolving business models and changing consumer preferences,” Shim explains. “We’re building a mobility insurance and risk platform to proactively support these innovators.”

Expanding into Shared Micromobility

In the shared micromobility space, where bundled insurance isn’t always offered at checkout, DigiSure would primarily provide its rapid screening services. This would help operators filter out potentially reckless individuals from using shared scooters or bikes.

Operators could then leverage this service to reduce their overall insurance costs, which often constitute a significant portion of operating expenses in a sector still striving for profitability.

Coverage Details and Focus on Screening Technology

Currently, DigiSure’s insurance doesn’t cover rider personal injury, which Shim notes is standard industry practice. The platform provides property insurance for vehicle owners in peer-to-peer marketplaces, protecting the vehicle itself.

It also offers casualty insurance for both the marketplace/operator and the renter/driver, including liability coverage for accidents causing injury or property damage to others.

However, Shim emphasizes that the screening technology is what truly sets DigiSure apart. “We prioritize screening to eliminate high-risk individuals and maintain platform safety.”

“A small percentage of customers – 1% to 2% – typically account for 30% to 40% of the most significant claims costs. By controlling these outcomes, we can substantially reduce insurance expenses.”

Investment Details

This funding round was spearheaded by Morado Ventures, with participation from Xplorer Capital, Valor Equity Partners, Clocktower Technology Ventures, True North Cos, and Fabio Rosati, former CEO of Upwork.