In Love With Insurance
Why we invested in Hedvig.
The insurance industry doesn’t have a sparkling reputation amongst consumers. As far as NPS goes, the industry as a whole ranks consistently at the bottom of every list imaginable.
We believe traits like trustworthiness, transparency, and responsiveness should be the words we use to describe category leaders. Which brings us to Hedvig. Hedvig is a purpose-built home insurer based on a simple premise:
“People don’t like outdated money-grubbing companies that treat them like crap.”
Hedvig has translated this matter-of-fact mindset into a breakout insurance product with a customer-aligned business model to boot: instead of extracting as much money as possible from its customers, Hedvig takes a flat fee for its services, takes care of its members, and donates anything extra to non-profit partners. Their initial success, starting in Sweden and other European countries, is being fueled by five factors:
- Full-Stack Approach: It’s a one-stop shop for purchasing, managing, and claim processing rooted in technology that they’ve developed internally.
- Human-Centered, Mobile-First: Their product is as easy to interact with as the best consumer brands out there — something the insurance industry isn’t known for, and consumers love.
- AI-Powered: Hedvig uses AI with purpose to power its underwriting, ensuring customers get the best products at the best price.
- Frictionless Customer Service: Hedvig customers have filled out exactly zero forms, have spent zero minutes on the phone, and wait on average 2.7 minutes to get a reply when chatting with Hedvig reps.
- Values-Aligned Team: The team at Hedvig has pedigree, coming from the biggest technology successes in Sweden, and all of Europe — all with strong operating values.
Their mission is to give people the world’s most incredible insurance experience. We’re thrilled to be partnering with Cherry Ventures and D-Ax (the venture arm of the Axel Johnson Group, one of the oldest and largest trade and service companies in the Nordic region) to play a small part in helping this team make it happen.
