Shepherd: AI Supported Insurance for Construction
In just 18 months since its 2021 launch, construction insurance firm Shepherd has achieved an astounding five-fold growth in Gross Written Premiums. Originally offering Excess Liability, the company swiftly expanded to cover all primary casualty lines - General Liability, Commercial Auto, and Workers' Compensation. This growth wasn't just a numerical feat; it marked a paradigm shift in the industry.
Top retail insurance brokers in construction now swear by Shepherd's tech-driven underwriting process. Boasting a remarkable 24-hour submission-to-indication turnaround, Shepherd leaves competitors trailing weeks behind.
“There is an urgent need for innovation in the commercial construction insurance industry,” says Justin Levine, CEO and Co-Founder of Shepherd.
“Our mission at Shepherd is ambitious but simple: to create the first comprehensive platform that combines top-tier insurance offerings with world-class software to help commercial businesses manage risk and prevent losses.”
AI-Powered progress: Shepherd's funding leap
In a funding round spearheaded by Costanoa Ventures, Shepherd secured a substantial US$13.5m. This injection will fuel the expansion of its underwriting and software team, expedite product development, and amplify its software offerings for the vast US$10tn commercial construction industry.
The latest addition to Shepherd's arsenal is Shepherd Compliance, an AI-assisted software engineered to simplify and automate vendor compliance review. Tailored for Shepherd policyholders, the software seamlessly integrates with project management platforms like Procore, ensuring a user-friendly experience across existing systems.
“Commercial construction is a central and vital driver to the overall economy, yet has been overlooked by technology providers for years,” said Mark Selcow, General Partner at Costanoa Ventures, and newly appointed board member for Shepherd.
“High insurance costs and even unavailability of coverage plagues a sector already struggling with tight margins and business risk. The team behind Shepherd is taking a technology-forward approach, developing innovative insurance products that use modern software and data techniques to create a vastly superior insurance offering. Shepherd delivers better priced, better fit policies for clients, thanks to its data and tech advantages."
Backing this funding round are industry heavyweights Intact Ventures, Era Ventures, Greenlight Re, and Spark Capital, signifying a collective belief in Shepherd's transformative approach.
Tech-Forward mission: Reshaping construction's future
Shepherd's core philosophy revolves around leveraging technology to revolutionise an industry plagued by high costs and coverage scarcity. The company envisions a future where construction businesses seamlessly manage risk and mitigate losses through a cohesive blend of cutting-edge insurance products and advanced software.
The newly acquired funds will be pivotal in driving Shepherd's tech-forward mission. The focus lies on fortifying the underwriting and software teams, fostering innovation, and expanding its software suite, creating a powerful synergy for the benefit of the commercial construction sector.
Shepherd's journey isn't just about growth and funds; it's a commitment to redefining safety and sustainability in construction. With a potent combination of insurance prowess and technological innovation, Shepherd is spearheading a new era, one where construction thrives on efficiency, safety, and forward-thinking solutions.
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