Pie Insurance Raises $118M for Workers' Comp Coverage

Pie Insurance Secures $118 Million in Series C Funding

Pie Insurance, a company specializing in workers’ compensation insurance for small businesses, has announced the successful completion of a $118 million Series C funding round this morning.

This funding round was co-led by Allianz X, the investment division of the German financial services company Allianz, and Acrew Capital. This latest investment brings the total equity funding raised by the Washington, D.C.-based startup since its founding in 2017 to over $300 million.

Details of the Funding Round

While Pie Insurance did not disclose the specific valuation associated with this funding round, the company indicated that it represents a substantial increase over previous valuations.

Existing investors, including Greycroft, SVB Capital, SiriusPoint, Elefund, and Moxley Holdings, also participated in the Series C financing.

Revenue Growth and Expansion

The company has experienced significant revenue growth, with a 150% increase since securing $127 million in a Series B extension last May.

Pie Insurance has also expanded its team, growing its headcount from 140 employees last year to 260 currently.

The company began offering its insurance policies in March 2018. Gross written premium has surpassed $100 million, and the company now collaborates with over 1,000 agencies across the nation.

Previously, in the first quarter of 2020, the company reported writing nearly $19 million in premiums, a 150% increase compared to approximately $7.5 million during the same period in 2019.

Benefiting from Digital Adoption

Pie Insurance, with its cloud-based and internet-driven platform, has benefited from the accelerated adoption of digital technologies over the past year.

John Swigart, co-founder and CEO of Pie Insurance, stated, “We are riding that wave.” He further emphasized the company’s belief that small businesses deserve a superior experience, and that technology is the key to delivering improved efficiency, lower prices, and a better overall service.

Customer Base and Insurance Offerings

Pie Insurance serves a diverse range of small businesses, including those in trades, contracting, landscaping, janitorial services, auto repair, and the restaurant industry.

Insurance is distributed both directly through the company’s website and through a network of thousands of independent insurance agents.

The Importance of Workers’ Compensation Insurance

Lauren Kolodny, founding partner at Acrew Capital, highlighted that workers’ compensation insurance is legally required for almost all businesses operating in the United States.

She noted that obtaining and managing workers’ compensation insurance has historically been a complex process, particularly for small businesses that have often been overlooked by larger insurance providers.

Pie Insurance is able to provide underwriting decisions “almost instantly,” digitally, and at a more affordable cost than traditional insurance carriers.

Allianz X’s Perspective

Dr. Nazim Cetin, CEO of Allianz X, shared with TechCrunch via email that his firm views Pie Insurance as operating within a promising and expanding market that is well-suited for digital innovation.

He emphasized the company’s utilization of proprietary data and advanced analytics to deliver customized underwriting and automation capabilities.

Furthermore, he indicated potential for collaborative opportunities with other companies within the Allianz network.

Future Plans

The newly acquired capital will be allocated towards further investment in technology and automation.

Pie Insurance intends to expand its core workers’ compensation insurance business and prepare for the introduction of new insurance products in 2021 and beyond.