The insurance industry is at the forefront of a rapidly changing world and must find ways to understand and respond to that change in risk profile. hyperexponential’s pricing decision intelligence (PDI) platform, hx Renew, enables insurers to turn unruly data into powerful pricing decisions.
In a recent development, the London-based insurtech startup has raised $73 million in Series B equity funding. The round was led by Boston-based VC firm Battery Ventures alongside participation from existing investors Highland Europe and Andreessen Horowitz (backed Pimlico, Zibra AI, and Atlas).
This fresh influx of funds will support hyperexponential’s expansion into the US, as it plans to open an office in New York this year. It will also enable increased investment in new product capabilities to serve growing client demand in adjacent insurance markets, including the SME insurance sector. Furthermore, the company plans to double its global team to over 200 in 2025.
In addition to the investment, Battery Ventures Partner Marcus Ryu, Co-founder, Chairman, and former CEO of Guidewire Software joined hyperexponential’s board as a director.
PDI platform for global insurers
Founded by Amrit Santhirasenan and Michael Johnson in 2017, hyperexponential serves insurance and protects individuals and businesses from a wide array of risks. Its PDI platform – hx Renew, enables insurers to leverage large and alternative datasets and develop rating tools rapidly. This platform is touted to be the world’s first pricing decision intelligence platform dedicated to insurers.
Insurtech Product of the Year
Hyperexponential’s hx Renew platform was named Insurance Insiders’ 2023 ‘Insurtech Product of the Year,’ enabling customers like Convex and Conduit Re to sharpen their competitive edge with enhanced agility, efficient risk transfer, and aggregate loss avoidance. hx Renew is used by leading insurers across the globe to write $37 billion in GWP per annum.
Last year, hyperexponential has grown sales 10x while staying profitable, serving some of the world’s largest insurers, including Aviva, HDI, and Conduit Re.
In 2023, Aviva’s Global Commercial and Specialty team was able to build 20 models in 9 months, unlock machine learning capabilities, and improve the speed and accuracy of their pricing and underwriting decisions, even as the frequency and severity of risks continue to evolve continuously.
Amrit Santhirasenan, hyperexponential CEO and Co-founder said: “We’ve focused on building a capital-efficient, independent business that was both high-growth and sustainable from the outset. Although we have more cash on hand than we’ve raised, we wanted to bring on new expertise in our target markets as we continue our growth into new verticals and geographies. We are delighted to have attracted a world-class set of investors who bring an unparalleled combination of experience, expertise, and support to hyperexponential in the next phase of our expansion.”
“I believe hyperexponential is among the most compelling new entrants in insurtech I have seen in over twenty years of serving the P&C insurance industry,” said Marcus Ryu, the Battery Ventures Partner Marcus Ryu. “The former software engineers and actuaries with top tier commercial insurers, Amrit and Michael each bring a deep practitioner’s grasp of the new requirements for risk pricing. hyperexponential is rapidly becoming an indispensable tool for the insurance industry to thrive in a future that is not reliably the same as the past.”
Angela Strange, General Partner at a16z added, “Pricing risk is the most critical function of an insurance carrier. Yet, most actuaries still work with cumbersome Excel models and are constrained by legacy software that limits their ability to dynamically incorporate new data and more sophisticated analytical techniques…hx Renew is rapidly becoming the operating system for pricing risk in the global insurance market. We are thrilled to join forces with the hyperexponential team as they launch in the US and expand beyond specialty lines.”
