Insurtech startup Metromile raises $90 million Series E to expand its pay-per-mile insurance
Metromile, an insurtech startup with Pay-per-mile insurance for low mileage drivers, has raised $90 million in Series E funding to expand pay-per-mile insurance and simplify every step of the insurance experience through the use of artificial intelligence (AI) in claims processing. The latest financing was co-led by leading insurance companies Tokio Marine Holdings and Intact Financial. The financing included participation from existing and new investors NEA, Index, Future Fund and Section 32, the venture capital firm founded by former Google Ventures CEO, Bill Maris.
In addition, the company also announced the appointment of Stacy J. Smith as Independent Director to Metromile’s Board of Directors. Smith previously served at Intel Corporation as the executive vice president of Manufacturing, Operations and Sales and was also the longtime CFO.
Founded in 2011 by David Friedberg and Steve Pretre, Metromile is revolutionizing car insurance and car ownership through technology with its pay-per-mile insurance model. By offering affordable car insurance, transparent pricing based on the miles you actually drive, data to optimize how you use your car, and instant access to detailed vehicle diagnostics via the driving app, Metromile is transforming car insurance, and car ownership, to be more intelligent, seamless, and accessible than ever before. Metromile is expanding across the US, and currently empowering drivers in California, Illinois, Oregon, New Jersey, Pennsylvania, Virginia and Washington. The company claimed thay customers who switch to their pay-per-mile car insurance save an average of $500 a year. Metromile’s pay-per-mile is a perfect fit for consumers who don’t drive much.
“Tokio Marine Holdings and Intact Financial are ideal partners to support our rapid growth and ongoing commitment to leveraging AI and machine learning to improve the entire insurance experience,” said Dan Preston, CEO of Metromile. “This allows us to advance our use of sensors and automation to provide Metromile customers with the world’s simplest claims experience, while lowering the cost of car insurance and bringing technology to the forefront of the insurance industry.”
Metromile is transforming the claims experience by leveraging the power of AVA, the brand’s AI claims system. AVA is a first-of-its kind smart claims system designed to speed up the process of verifying and paying out insurance claims. Using Metromile Pulse sensor data, AVA can reconstruct the scene of an accident to instantly determine if claim details are accurate. When the claim is verified, Metromile is able to automatically approve payments within seconds.
“Metromile is truly transforming the insurance industry with their technological infrastructure that combines machine learning and data to build the most seamless customer experience,” said Makoto Okada, Group Chief Digital Officer of Tokio Marine Holdings. Metromile is currently available in eight states, including Ariz., Calif., Ill., N.J., Ore., Pa., Va., and Wash., and the company is focused on offering pay-per-mile insurance nationwide.