Israeli AI insurance startup, Honeycomb Insurance, closed a $36 million Series B funding round today led by Zeev Ventures, with participation from Arkin Holdings and Launchbay Capital, as well as existing investors Ibex Investors, Phoenix Insurance, and IT-Farm. The latest round brings their total funding to nearly $55 million.
The funding will be used to improve user experience, boost broker profitability, and broaden the scope of policies offered. Honeycomb Insurance plans to enhance its technological capabilities with proprietary AI models using unique data and expand into new insurance markets, aiming to become a comprehensive solution for commercial real estate insurance in the U.S.
Traditional insurers often apply a “broad brush” approach to underwriting, leading to limitations and coverage gaps for landlords. Honeycomb’s AI-driven technology enables precise risk management and underwriting at the individual building level, offering consistent coverage at competitive prices for well-maintained properties. With a market estimated at over $34 billion in the U.S. alone, the startup is pioneering landlord insurance by streamlining the customer and broker experience, leveraging proprietary underwriting technology, and offering tailored insurance coverage that adapts to clients’ evolving needs.
The startup sells its policies directly through its platform and via a network of top-tier insurance brokers. These brokers can efficiently “bulk-quote” an unlimited number of submissions in real-time, a process that previously took weeks. This efficiency translates into greater profitability for brokers and significant value for customers.
Currently operating in sixteen of the largest U.S. states, covering approximately 60% of the market, Honeycomb insures over $21 billion worth of real estate assets. The startup aims to triple this figure in the next 12 months and plans to double its staff from 90 to 180 employees within the next 18 months to support its growth.
Honeycomb Insurance was founded in 2019 by Adam Cherubini, Itai Ben-Zaken, Manny Rios, and Nimrod Sadot.
