Founded by entrepreneur Richard Joffe (main picture), known for his involvement with US-based ventures Park Assist and Stella.ai, Honey Insurance made its debut in 2021.
The company made waves early on by raising an impressive $15.5 million in a Seed round, led by underwriting partner RACQ and supported by various institutional investors including AGL, Metricon, Mirvac, and PEXA.
The latest Series A funding was spearheaded by Gallatin Point Capital, marking the investment firm’s first foray into the Australian market. Based in Greenwich, Connecticut, Gallatin Point Capital has a track record of backing emerging insurance ventures. Notably, the firm injected $1.25 billion into Trusted Resource Underwriters Exchange in a partnership with American Family Insurance Group late last year.
Honey Insurance has rapidly captured approximately 1% of the Australian home insurance market. The startup distinguishes itself by offering what it terms “smart” insurance, leveraging Honey-branded sensors developed by US-based tech startup Notion. These sensors are designed to detect common issues leading to insurance claims, such as water leaks, open doors and windows, temperature fluctuations, and activated smoke alarms. To incentivize adoption, Honey Insurance provides the sensor kit free of charge along with premium discounts.
Amidst premium increases of 40% or more over the past 18 months, attributed to losses in the sector following a series of natural disasters, Honey’s innovative approach has garnered attention. The Australian insurance industry, valued at approximately $10 billion, faces ongoing challenges, particularly in the realm of homeowner insurance.
Notably, Honey Insurance formed a strategic collaboration with ASX-listed digital property exchange platform PEXA two years ago, enabling the distribution of its insurance products through the PEXA Key app.
With this substantial Series A funding, Honey Insurance joins the ranks of Australian startups securing significant investment rounds. Notable examples include Wollongong BNPL unicorn Scalapay’s $210 million raise in 2021 and Canberra-based air traffic management startup Skykraft’s $120 million round in 2023.
