Buddy reportedly offers its software to brokerages and insurance carriers on a subscription basis, charging a monthly fee for each insurance product available. The insurtech also provides accident insurance, which is aimed at outdoor enthusiasts who want coverage for intensive activities like rock climbing or mountain biking.
Launched in by CEO, Charles Merritt, insurance veteran Jay Paul and Martin Agency alum David Vogeleer, subscribers have access to Buddy’s platform, allowing them to manage and present products to their clients. Customers can also conveniently purchase coverage through the interface provided by Buddy. Additionally, Buddy levies a fee for each transaction facilitated through its platform.
According to SEC filings, the insurtech, which is known for its software solutions for insurance companies and on-demand accident insurance for outdoor enthusiasts, raised the capital from notable investors including Sequoia Capital, Plug and Play, and Atypical Ventures.
The funding round closed in mid-January, and records show that the initial sale of the round commenced in March 2023, indicating a steady buildup of investor interest over time. Merritt, has so far not disclosed plans for the freshly acquired capital.
The funding round happened two years after Buddy underwent a strategic pivot, shifting its focus towards providing software solutions to insurance companies. However, the company continues to maintain its offering of on-demand accident insurance, a product it initially introduced back in 2018.
Merritt said that the pivot was a strategic move to capitalise on the groundwork laid by Buddy’s platform, recognising its potential application within the insurance sector.
“We are very good at building software to transact insurance on the internet. There are other people there who would like their insurance products to be easier to transact on the internet,” he said.
“For me, that transition is a reminder that the people who buy things on behalf of companies are also people. Communicating how we’re addressing a need for what you might think of as a customer isn’t really that different from how you would talk to someone who is spearheading ecommerce at a big insurance company. We have a very human approach that started with our consumer roots.”
He added: “I don’t know if (the insurance industry) is dead last in terms of percentage of penetration, but they are definitely evolving now in a way that other industries have evolved 10 or 20 years ago when it comes to ecommerce.”
