San Francisco-based personal insurance shopping site Gabi has raised $9.5 million in Series A funding, led by Canvas Ventures. Also joining the ro
und are Correlation Ventures, Northwestern Mutual Future Ventures, Securian Ventures and prior investors Capital Ventures and Project A.
Gabi said it plans to use the funds to accelerate its nationwide expansion. The digital agency began offe
ring auto and home insurance in California in 2017. Today it is also available in Ohio, Texas, North Carolina, Pennsyl
vania and Arizona. Gabi currently offers insurance for auto, home, renters, umbrella and life.
The Gabi model promises consumers savings by “continually com
parison shopping” for buyers and by eliminating agents and brok
ers. It also promises carriers quality customers who file few claims while promoting how it easy it can be for cust
mers to switch from one insurance carrier to another for a better deal.
“Instead of relying on insurance agents who may be driven by commission or only compare a few quotes, Gabi’s t
echnology automatically scours the 25 largest insurance companies i
n the U.S., including Nationwide, Travelers, and Safeco, for the best rates and most relevant offerings,” says Hanno Fichtner, CEO and co-founder.
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Rebecca Lynn, general partner at Canvas Ventures who will join the Gabi board, says Gabi is “going after the $75 billion worth of commissions
that are paid every year in property, casualty and life insurance.” The investor thinks the technology can be tailored over time for other insurance products.
Krzysztof Kujawa, Gabi’s other co-founder and chief product officer, says the service “continually comparison sho
ps” because insurance company rates and offerings are constantly changing. He said two out of three of Gabi’s customers save money on insurance, with an average savings of $460 per year.
Gabi connects to the current auto or home insurance account of the customer, compares prices, discovers the best offers, and presents opportunities to s
witch. Customers then manage their insurance products using Gabi’s app or they can call a service agent if they wish.
If customers choose to switch at any time, “they are not required to repe
ey are not spammed with unwanted calls or emails,” says the company.
According to the company, its fastest-growing demographic is the 35-55 age group. The company also targ
have looked for insurance years ago but have not constantly researched.