Surround Insurance Raises $2.5M Seed Round to Help Consumers
Surround Helps Consumers Navigate Life’s Transitions with “Insurance Built Around You”
Boston-based startup offers lifestyle-based insurance for driving, renting, and freelancing
Co-founded by insurance industry veterans, Jay Grayson and Kate Terry
CAMBRIDGE, Mass., Nov. 21, 2022 – Surround Insurance today announced that it has closed a $2.5 million seed round led by MassMutual through the MM Catalyst Fund. New investor Aperture VC also participated in the round along with existing investors Newark Venture Partners and Cameron Ventures.
Co-founded by insurance veterans Jay Grayson and Kate Terry, Surround addresses a $10 billion opportunity for consumers getting started with insurance. Surround has designed its experience around transition moments like leaving the parental nest for college, establishing life in the city, or making a first-time car purchase.
“Jay and Kate are focused on solving problems for consumers who need insurance that’s built around their lifestyle instead of their assets – insurance that isn’t easily accessible today,” said Jason Allen, Portfolio Manager, Impact Investments at MassMutual. “MassMutual’s relationship with Surround extends back to our collaboration through the MassChallenge FinTech program, and this investment represents our continued confidence in Surround’s future and vision.”
Surround’s initial set of products are designed around emerging risks such as driving rented or shared cars and freelancing for extra income. Surround helps first-time insurance purchasers with in-the-moment advice and products built for an asset-lite lifestyle. The company’s most popular product is the Drive-Rent bundle which includes portable auto insurance for non-car owners plus apartment insurance.
“Lifestyles of young adults in their 20s and 30s are changing rapidly and dramatically,” said Jay Grayson, CEO and Co-founder of Surround. “They are moving, living, and working in ways never imagined by traditional insurance, and we’re helping them navigate a confusing and complicated set of risks. Oftentimes, our customers are buying insurance for the first time, so we have the perfect opportunity to win them early and then keep them for life.”
Surround’s insurance platform provides a consumer-centric experience around three core product areas:
The Customizer – Match your lifestyle to the right insurance for you
Insurance Advisor in Your Pocket – Connect with a live agent for expert advice, not a bot.
Insurance Starter Packs – Get a personalized insurance bundle in less than four minutes
Funds from the round will be used to expand Surround’s product and distribution footprints. Surround products are currently available in Massachusetts and will be available in eight additional states in early-2023. The Company distributes through independent agents, partners such as Nerdwallet, and directly to consumers through the Surround Insurance Agency.
Chelsea Haraty: ChelseaHaraty@massmutual.com
About Surround Insurance
Surround is simply the best way to get started with insurance. Based in Cambridge, Massachusetts, the Surround Insurance team is passionate about changing the insurance experience for consumers in their 20s and 30s who drive innovation in the modern economy. We combine innovative new products with expert advice through independent agents, mobility platforms, embedded channels, and directly through the Surround Insurance Agency.