Leading insurtech marketplace will expand its operations and partnerships across the automotive retail ecosystem
Vermont Business Magazine Burlington-based DealerPolicy, the leading insurance marketplace for automotive retail, today announced its $110 million Series C investment led by the Growth Equity business within Goldman Sachs Asset Management (Goldman Sachs) with participation from existing investors including 3L Capital and Hudson Structured Capital Management Ltd. (doing its re/insurance business as HSCM Bermuda). The new investment will be used to accelerate the growth of the company's next-generation finance and insurance (F&I) offerings for both dealers and car buyers, enabling automotive insurance to be seamlessly integrated online and at the point-of-sale. Goldman Sachs’ Paul Pate will join the company’s board of directors.
“DealerPolicy has successfully pioneered the assimilation of personal insurance into the automotive retail process, in a unified and compliant manner,” said Paul Pate, a Vice President in the Growth Equity business within Goldman Sachs Asset Management. “We’re thrilled to support the DealerPolicy team as they continue to transform the purchase of cars and insurance.”
DealerPolicy will expand its operations to further develop and embed modern day insurance throughout the entire car shopping and ownership experience. To expedite the development and roll-out of its insurance distribution and fulfillment solutions with its major insurance carrier partners, the company intends to triple its product and engineering teams over the next 12 months by hiring new talent. Additionally, the company will increase investments in strategic partnerships.
On average, DealerPolicy Insurance saves consumers who report savings $64 per month on automotive insurance. DealerPolicy Insurance, the brand’s award-winning agency, and its network of over 1,000 dealers and more than 40 leading insurance carriers, have written over $200 million in total premiums for car-buyers nationwide since establishing the company in 2016. Automotive dealerships in their network report on average 44 percent higher gross margins in their F&I departments because of increased customer budgets from their insurance savings.
DealerPolicy Collaborates With JM&A Group And Darwin
DealerPolicy aso announced on August 24 a strategic alliance with JM&A Group, one of the largest independent providers of finance and insurance (F&I) products and dealer services in the industry, and an alliance with Darwin Automotive, a J.D. Power subsidiary and global leader in data analytics and consumer intelligence. Together, the three companies will work to deliver the next generation of F&I solutions to dealers nationwide. Through these alliances, DealerPolicy will continue to deliver innovative insurance products that bring together automotive insurance and car buying, with many consumers seeing cost savings.
DealerPolicy’s insurance platform for automotive retail affords dealers the ability to offer a more holistic car buying experience. Partnering with JM&A Group provides DealerPolicy with access to more than 3,800 dealers, further expanding its reach while incorporating personal insurance into JM&A Group’s industry-leading process for presenting and selling service contracts and other vehicle protection products.
To further enhance the retail experience for dealers and car buyers, the company has collaborated with Darwin Automotive to fully integrate FastPassTM, DealerPolicy’s proprietary insurance solution, into the leading dealer menu used to present F&I products to consumers.
“Our vision has long been to improve the car buying experience by seamlessly embedding the industry’s only choice-based automotive insurance platform into the systems, processes and culture of automotive retail,” said Travis Fitzgerald, Co-Founder and CEO of DealerPolicy. “To be successful, we knew we had to work with other proven leaders in automotive finance and insurance such as JM&A Group and Darwin Automotive, to deliver the ultimate experience for dealers and consumers. We are honored to be the exclusive personal insurance partner for JM&A Group and to be fully integrated into the Darwin Menu, enabling a faster and superior process for everyone.”
“With all of our product offerings through JM&A Group including Fidelity Warranty Services and Fidelity Insurance Agency, we want to maximize the value we bring to our dealer partners across the country,” said Elliot Schor, Vice President of Sales Operations at JM&A Group. “We immediately recognized DealerPolicy as one of those opportunities that perfectly aligns with our value proposition. DealerPolicy is leading this new and exciting category and providing tangible value to both dealers and consumers alike.”
“The real value that DealerPolicy brings to its dealer partners is their extensive knowledge of automotive retailing,” said Michael Fader, Vice President at MileOne Autogroup. “Their ability to consistently convert insurance savings and customer buying power into incremental back-end profit has been a tremendous help to our business.”
“Darwin Automotive is first and foremost an automotive technology company, and anything we can do to streamline a natural step in the process for dealers and customers is something we get really excited about,” said Phil Battista, President of Dealer Technologies at J.D Power. “Seamlessly integrating DealerPolicy’s choice-based insurance solution, FastPassTM, into the F&I menu drives meaningful value for our collective dealers and customers. We are thrilled to be a part of this collaboration that will enable the future of how people buy cars and insurance.”
With DealerPolicy’s innovative technology solutions, personal insurance is available alongside traditional F&I products. On average, DealerPolicy Insurance customers, who report savings, save car buyers $64 per month on their automotive insurance, in addition to offering homeowner, renter, marine, RV, motorcycle, and powersports coverage. In turn, car buyers can utilize these savings to further protect their investment through other value-added vehicle protection products, thus increasing dealers’ F&I gross profits by as much as 44%. For more information, visit www.dealerpolicy.com.
For more information about DealerPolicy visit, www.dealerpolicy.com.
About DealerPolicy
DealerPolicy is the most trusted and complete digital insurance marketplace for automotive retailers and their valued customers. The company's innovative mobile technology enables car-buyers to view multiple insurance quotes and immediately purchase online and/or connect with licensed insurance agents to complete the process. With an exclusive combination of partnerships among premier automotive retailers and data providers, an industry-best insurance carrier network, and access to DealerPolicy Insurance licensed agents, DealerPolicy is recognized for its place at the forefront of Insurtech. DealerPolicy Insurance is a licensed insurance agency, with licenses to operate in the lower 48 states. For more information, visit www.dealerpolicy.com.
About Goldman Sachs Asset Management Growth Equity
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world’s leading institutions, financial advisors, and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of March 31, 2021. Driven by a passion for our clients’ performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate and infrastructure. Since 2003 the Growth Equity business within Goldman Sachs Asset Management comprising more than 75 individuals has invested over $13 billion in companies led by visionary founders and CEOs. We focus exclusively on investments in growth stage and technology-driven companies spanning multiple industries, including enterprise technology, financial technology, consumer and healthcare. Follow us on LinkedIn.
About Hudson Structured Capital Management Ltd. (doing its re/insurance business as HSCM Bermuda)
Hudson Structured Capital Management Ltd. is an asset manager focused on alternative investments seeking mezzanine level returns. Our focus is on the Re/Insurance and Transportation sectors. HSCM launched in 2016 and as of July 1, 2021, has more than $3.3 billion in assets under management and committed capital. HSCM focuses on core economic sectors that are likely to outgrow global GDP, offer low correlations with broader markets, and are experiencing a shift from balance sheet and to market financing. For more information, please visit www.hscm.com.
About 3L
3L provides capital, perspective and a global network of entrepreneurs and industry leaders to exceptional, early-stage growth companies. The firm invests in both consumer and enterprise businesses characterized by strong founders and executives, demonstrable product-market fit and scalable unit economics. Representative 3L companies include goPuff, Ro, Daily Harvest, Flaschenpost, ChowNow, and Relativity Space, among others. The firm was founded in 2017 and has offices in Los Angeles and New York City. For more information, visit www.3Lcap.com
Source: BURLINGTON, VT (August 26, 2021) – DealerPolicy visit, www.dealerpolicy.com