US-based gig economy insurance provider Buckle secured $60m on Wednesday in a series B round featuring Assurant Ventures, the corporate venturing subsidiary of insurance company Assurant.
Private equity firm Volery Capital Partners led the round, which also featured HSCM Bermuda, the insurance investment vehicle for asset manager Hudson Structured Capital Management, as well as Eldridge and unnamed other investors. HSCM Bermuda also expanded an existing $10m term loan to $20m.
Buckle’s online platform provides insurance for gig economy workers like ride hailing and delivery drivers.
The company will use the funding to scale the platform, which uses ride hailing and delivery data in its policy underwriting, as opposed to credit scores which are more difficult to come by for gig workers, resulting in higher premiums.
To date, Buckle has raised just over $100m in equity and debt financing, and has bought and recapitalised three insurance carriers: Gateway Insurance Company – which it acquired in June 2020 – American Country Insurance Company and American Service Insurance Company.
HSCM Bermuda had previously co-led Buckle’s $31m series A round in August 2020 alongside Eos Venture Partners, providing the initial term loan as part of the round.
Marty Young, co-founder and chief executive of Buckle, said: “This new raise helps validate Buckle’s positive momentum across its insurance programmes and reinforces our belief in the opportunity for growth the company faces today.
“Through our capital efficient, multi-carrier strategy, we are expanding our digital insurance platform nationwide so that we can offer a range of attractive insurance options to US gig economy workers, many of whom have been considered essential workers throughout the pandemic.”
