Openly LLC, a startup that uses artificial intelligence to generate homeowners insurance quotes, has raised $100 million to accelerate its growth plans. 

Boston-based Openly announced the funding round on Thursday. The round was led by Eden Global Partners with participation from Alphabet Inc.’s Gradient Ventures fund, which invests in AI companies, and several other institutional backers. In an interview with the Boston Business Journal today, Openly Chief Executive Officer Ty Harris (pictured, right, with co-founder Matt Wielbut) said the new capital will help the startup become profitable and stay compliant with insurance industry regulations.

Openly sells homeowners insurance policies backed by a unit of North Carolina-based insurer Clear Blue Financial Holdings LLC. It provides coverage for primary residences, vacation homes and other properties. Openly says its standard insurance plan offers “above average protection” compared with competing alternatives.

The company uses an AI-powered onboarding application to generate price quotes for homeowners seeking to buy a policy. According to Openly, receiving a quote only requires homeowners to enter their names, dates of birth and an address into the application. The price offer takes about 15 seconds to generate.

Behind the scenes, Openly’s AI software generates price quotes by combining the data that homeowners submit with information from a variety of external sources. The Boston Business Journal reported that the company evaluates county records and aerial photos of the property for which a homeowner is seeking to buy insurance. Additionally, its software analyzes relevant home listings.

Openly provides not only insurance policies but also various supporting services. The company has a team dedicated to processing customers’ insurance claims. Additionally, Openly works with contractors who can determine what repairs a property requires after a claim is accepted and then carry out those repairs.

The company sells policies through third-party insurance agents. It currently works with more than 30,000 agents in 21 states, a number that it hopes to grow following its latest $100 million funding round. As part of the effort, Openly reportedly intends to establish a presence in four or five additional states next year.

The company also hopes to achieve profitability with the help of the capital infusion. Additionally, the investment will make it easier for Openly to comply with insurance industry regulations. Companies that provide insurance policies must have a certain amount of capital on their balance sheets to mitigate the risk posed by unexpected financial losses. 

Openly is the latest in a series of insurance technology companies to have raised funding this year. Previously, Lula Technologies Inc. raised $35.5 million to help transportation companies purchase insurance coverage for their vehicle fleets. Earlier, Accelerant nabbed $150 million in funding for its namesake insurance underwriting platform.

Photo: Openly