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Gabi Raises $9.5M in Series A Financing

SAN FRANCISCO, Feb. 21, 2018 /PRNewswire/ -- Gabi, which provides a free, online "personal insurance shopper," has raised $9.5M in Series A funding, led by Canvas Ventures. Also joining the round are: Correlation Ventures, Northwestern Mutual Future Ventures, Securian Ventures and prior investors A.Capital Ventures and Project A. Gabi plans to use the funds to accelerate its nationwide expansion in 2018.

According to Princeton Survey Research Associates International, 62% of insurance customers believe insurance shopping is too time consuming. The study also found one in three drivers (36%) never shops around for auto insurance quotes. That, according to Gabi, is unfortunate because shopping around often reaps savings of hundreds of dollars a year per customer.

"We estimate roughly $50 billion are overpaid by insurance customers in the US every year, and we'd like to put some of that money back into our customers' pockets," said Hanno Fichtner, CEO and Co-Founder, Gabi. "Instead of relying on insurance agents who may be driven by commission or only compare a few quotes, Gabi's technology automatically scours the 25 largest insurance companies in the US, including Nationwide, Travelers, and Safeco, for the best rates and most relevant offerings."

Based in San Francisco, Gabi is automating insurance shopping. The company began offering auto and home insurance in California in 2017. Today, Gabi-sourced insurance is available in California, Ohio, Texas, North Carolina, Pennsylvania and Arizona. Gabi currently offers insurance for auto, home, renters, umbrella and life.

"Gabi's technology continually 'comparison shops' and provides data-driven recommendations. We give our customers peace of mind knowing we are always looking out for them since insurance rates and offerings constantly change. We have seen two out of three of our customers save money on insurance. And the average savings on insurance from using Gabi is $460 per year," Gabi Co-Founder and CPO Krzysztof Kujawa said.

Gabi connects to the current auto or home insurance account of the customer, compares prices, discovers the best offers, and presents opportunities to switch. The customer then manages all insurance products using Gabi's app. Unlike existing auto comparison shopping sites, Gabi offers customers a service agent to speak with if desired, or they can interact only with the app. If customers choose to switch at any time, they are not required to repeatedly fill out long insurance forms, and they are not spammed with unwanted calls or emails.

"We think the market for Gabi's unique insurance-shopping technology is sizable," said Rebecca Lynn, General Partner at Canvas Ventures. "We also think the technology can be tailored over time for a range of insurance products," Lynn continued. Lynn believes Gabi is going after the $75 billion worth of commissions that are paid every year in property, casualty and life insurance.

Lynn will join Gabi's board of directors. Previous investors in Gabi prior to this Series A round include: A.Capital, Project A and SV Angel.

According to the company, their fastest-growing demographic is the 35-55 age group. They also target 'passive' shoppers who may have looked for insurance years ago but have not had the time or patience to constantly research. Many of their customers have multiple types of insurance such as auto and home. In addition, Gabi customers have 'loss ratios' well below the industry average of 70%. The average loss ratio for Gabi customers is below 30% because of the algorithms Gabi uses to source them. The low loss ratio of Gabi customers means they tend to file fewer claims than the average insurance customer.

In addition to working with long-established insurance companies, Gabi recently formed a partnership with Clearcover, a new "online-first' auto insurance company that is backed by American Family Insurance.

About Gabi:
Gabi Personal Insurance Agency, Inc. provides a free, online "personal insurance shopper" that is licensed throughout the US and works with the nation's largest insurance companies including Nationwide, Travelers, and Safeco and new entrants such as American Family Insurance-backed Clearcover. Its technology automatically and continuously comparison shops for the best insurance products for its customers, saving them time and money. Switching from one insurance provider to another, as well as, tracking multiple insurance products is made easy with the Gabi app. Founded by Hanno Fichtner, Krzysztof Kujawa, Vincenz Klemm and Pawel Olszewski, the company is based in San Francisco with a technical team in Lodz, Poland. Signup for free at www.gabi.com.

Team and founder pictures, logos, screenshots:

https://drive.google.com/drive/u/0/folders/0BzHvA10zgUb7U3ZEdkQyYW5FWmc 

 

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