Hippo, an insurtech that offers home insurance, is diving into the commercial insurance market by announcing the creation of a dedicated unit. The first product launched by Hippo’s Commercial Lines unit is customized insurance for American Homeowners Associations (HOAs). Initially, the HOA product is available in Arizona, but will be expanded to Nevada, Oregon, Utah, Colorado, Michigan, Illinois and Tennessee by the end of the year. The company plans to launch additional commercial insurance products aimed at condominium associations and single-family rentals. Hippo added that it is also working to develop additional offerings that will include community services and smart devices to increase protection for commercial customers.
What Hippo does
Since 2017, Hippo has been offering home insurance in a digital format. First launched in California, the insurance offering is now available to 70 percent of Americans in 29 states, according to the company. Hippo said it reported a 60% year-over-year increase in sales in the second quarter of 2020. The company explained that its home insurance differs from others because it is “more accurate and affordable through the use of smart home technologies and data analytics that allow profiling of a customer’s property at the time of onboarding.” Not only that. The insurtech actively reviews changes to a customer’s property over time, using satellite imagery and thermal levels and leveraging artificial intelligence, machine learning and public records.