HDVI Secures $16 Million in Series A Funding to Reshape Commercial Trucking Insurance
CHICAGO, August 12, 2020 – High Definition Vehicle Insurance (HDVI), a commercial auto insurance firm, announced today that it has secured $16 million in Series A funding. This round was spearheaded by 8VC and Munich Re Ventures, with additional investment from Qualcomm Ventures and Autotech Ventures.
Since its establishment in 2018, HDVI has achieved considerable milestones, and this latest funding round solidifies the company’s leading position in a market ripe for innovation.
Created by Chuck Wallace, a co-founder of Esurance, and Reid Spitz, formerly a VC investor in insurtech and logistics, HDVI is dedicated to providing a new commercial insurance model. The company seeks to assist small and mid-sized trucking fleets by improving their safety, compliance, and operational efficiency.
While the personal auto insurance sector has embraced digitization, commercial trucking insurance has lagged in adopting insurtech solutions. Several factors have contributed to the strain on the commercial auto sector, and the absence of integrated telematics data within insurance products has led to soaring costs for fleet operators and profitability challenges for carriers.
In contrast, HDVI provides fleet operators with an integrated set of hardware, software, and services combined with a next-generation insurance product. This unique approach rewards fleets and drivers for their dedication to safe operations.
“Double-digit increases in insurance costs are now common in commercial trucking, making it tough for many fleets to operate profitably,” said Chuck Wallace, CEO and co-founder of HDVI. “There is a lot of technology and data available that is not being taken advantage of that can help address new risks and changing demands. Demand for our product shows there’s a clear industry need for HDVI’s much better approach, and with our investors’ proven innovation and leadership across the logistics, insurance, and mobility industries, they are the perfect partners to continue to build our company with.”
HDVI plans to utilize the funds to foster company growth and extend its product offerings, addressing increasing market demand. Specifically, this involves team expansion, launching in new states, and developing added technological features for agents, fleets, and drivers.
The trucking industry is vital to the U.S. economy. Truck driving consistently ranks as the most common job in a majority of U.S. states. Insurers often grapple with challenges due to increasing mobile phone use, delayed first notices of loss, and rising jury awards, making it difficult to deliver cost-effective insurance to fleets while adding value. HDVI focuses on arming fleets with a new solution that makes use of high-quality telematics and an integrated suite of software and services to deliver greater protection and service than traditional insurers can offer — at the same or better price.
“Trucking fleets need better insurance coverage and tools that can help prevent incidents from happening in the first place,” stated Jake Medwell, Founding Partner at 8VC. “By adopting a technology-driven approach to protection, HDVI empowers fleet owners to gain control over their operations and regain confidence that their business and their employees will remain safe. We have great confidence in this market and that HDVI’s team are the lead innovators.”
“The powerful combination of the HDVI team, investors, and partners helps position HDVI to become a leading provider of commercial trucking services and insurance by transforming the traditional offering and creating unique value and opportunities,” said Amir Kabir, Principal at Munich Re Ventures. “We’re excited to join HDVI on their journey and to help them build on their impressive accomplishments over the past two and a half years.”
Prior to co-founding HDVI, CEO Chuck Wallace co-founded Esurance in 1999, guiding the company through the dot-com crash and substantial growth over eight years. Esurance was later acquired by Allstate for approximately $1 billion in 2011.
HDVI co-founder and Head of Operations Reid Spitz previously worked at 8VC, where he was involved in the firm’s insurtech, freight, and logistics tech practices. 8VC continued its relationship with Reid when he decided to pursue entrepreneurship.
About HDVI
HDVI is a forward-thinking commercial auto insurance company. The company provides commercial fleets with a modern, flexible insurance product combined with powerful tools designed to enhance safety, compliance, and profitability. HDVI has its headquarters in Chicago, Illinois, with additional offices in Greenville, South Carolina, and San Francisco, California.
For additional information, please visit http://www.gohdvi.com.
