Boston-based Incertech’s plans include expansion outside of Massachusetts in 2023
Surround Insurance is expanding its circle of influence with the closing of a new round of funding in which it raised $2.5 million. The insurtech start-up says it will use the cash infusion to expand both Surround’s product and distribution footprints. Currently available in Massachusetts, Surround says its offerings will be available in eight additional states by early 2023.
“Jay and Kate are focused on solving problems for consumers who need insurance built around their lifestyles rather than their assets — insurance that’s not easily accessible today,” said Jason Allen, portfolio manager of impact investments at MassMutual. “MassMutual’s relationship with Surround extends to our collaboration through the MassChallenge FinTech program, and this investment reflects our continued confidence in Surround’s future and vision.”
The seed round was led by MassMutual through MM Catalyst Fund, with new investor Aperture VC also participating in the round, along with existing investors Newark Venture Partners and Cameron Ventures.
as 2020 as outlined in its official publication on agency checklists, Surround, co-founded by Massachusetts insurance veterans Jay Grayson and Kate Terry, offers a $10 billion opportunity for consumer insurance startups. Surround has designed its experience around moments of transition, such as leaving the parental nest for college, settling into life in the city or buying a car for the first time.
Drive-Rent is by far Surround’s most popular offering
Surround’s initial products were designed around emerging risks like driving rented or shared cars and freelancing for extra income. Surround helps first-time insurance buyers with instant advice and products designed for an asset-light lifestyle. The company’s most popular product is the Drive-Rent Bundle, which includes portable car insurance and apartment insurance for non-car owners.
“The lifestyles of young adults in their 20s and 30s are changing rapidly and dramatically,” said Jay Grayson, CEO and co-founder of Surround. “They move, live and work in ways not imagined by traditional insurance, and we help them navigate confusing and complex risks. Often, our customers are buying insurance for the first time, so we have the perfect opportunity to win them early and then keep them for life.”
Surround’s insurance platform offers a consumer-centric experience around three core product areas:
- Customizer – Match your lifestyle with the right insurance for you
- Insurance Advisor in Your Pocket – Connect with a live agent for expert advice, not a bot.
- Insurance Starter Packs – Get a customized insurance package in under four minutes
The company distributes directly to consumers through independent agents, through partners such as Nerdwallet, and through Surround Insurance Agency.