Introduction
Rainbow, a digitally-enabled managing general underwriter (MGU) specializing in small business insurance, has announced the close of an $8m Series A funding round. Rainbow’s technology platform provides agents and brokers with a seamless quote-to-bind experience and incentivizes policyholders to adopt prudent operational practices. By leveraging a data-driven continuous underwriting framework, Rainbow enhances portfolio assessment, improving accuracy and reducing loss ratios.
The cash will support Rainbow’s expansion goals, allowing the company to widen its specialized underwriting approach to include more business verticals because of the funding. Rainbow has already begun offering its second insurance program in a number of states in the United States, and the company intends to roll out the program across the country in the coming months.
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Zigg Capital led the deal, and the funding was completed in the fourth quarter of 2024. Rainbow, established in 2022, deals with the specific difficulties associated with the small commercial insurance sector. Its platform has shown great deal of initial success with its flagship product, an acknowledged business owner’s policy (BOP) specifically designed for the restaurant industry.
Currently, this program is active in twenty-four states, and it is anticipated to soon expand into additional states such as New York. The company’s proprietary technology, which includes its risk monitoring software for “continuous underwriting,” is at the core of the creative approach that the company takes to risk management. The new funds will be utilized to expand Rainbow’s reach across more insurance verticals and markets, enhance its proprietary technology, and recruit top-tier talent to join its team.
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Industry Comments
CEO and co-founder Bobby Touran highlighted the company’s vision, stating: “As we continue to prove our thesis for scalable, software-driven underwriting across a growing portfolio of specialised insurance programmes, we’re thrilled to be deepening our partnership with Zigg, a firm that shares our vision for a differentiated approach to profitable insurance underwriting with endless potential.”
Zigg Capital General Partner Ryan Orley commented: “As our firm refined its broad InsurTech thesis, we identified that Rainbow has built the most compelling technology platform to serve the restaurant vertical, as well as the SME sector. Moreover, the team Bobby, Shalom, and Jamie have assembled at Rainbow exemplifies the profile Zigg seeks to back – efficient, fast moving, domain expert, and customer centric.”
FAQ 1: What is Rainbow, and what does it do?
Rainbow is a digitally enabled managing general underwriter (MGU) focused on small business insurance. It provides agents and brokers with a seamless quote-to-bind experience while encouraging policyholders to adopt smart operational practices. Using data-driven continuous underwriting, Rainbow improves portfolio accuracy and reduces loss ratios. Its flagship product, a business owner’s policy (BOP) tailored for the restaurant industry, has already seen significant success across 24 states, with plans to expand nationwide. Rainbow’s innovative approach aims to transform the small commercial insurance sector.
FAQ 2: How will the $8M Series A funding impact Rainbow?
The $8 million Series A funding, led by Zigg Capital, will accelerate Rainbow’s expansion and innovation in the small business insurance market. The funds will be used to broaden Rainbow’s underwriting capabilities to more business verticals and roll out its second insurance program nationwide. Rainbow also plans to enhance its proprietary technology, which includes its continuous underwriting risk monitoring software, and recruit top-tier talent to strengthen its team.
This investment comes as Rainbow proves its scalable, technology-driven underwriting model with its flagship business owner’s policy (BOP) for restaurants, already active in 24 states. With plans to enter additional states, including New York, Rainbow is positioned to address the unique challenges faced by small businesses while improving accuracy and reducing risks in the insurance process.
FAQ 3: What makes Rainbow’s approach to small business insurance unique?
Rainbow stands out for its technology-driven approach to small business insurance. Its platform enables a seamless quote-to-bind process for agents and brokers while incentivizing policyholders to adopt better operational practices. The company’s proprietary risk monitoring software, based on a continuous underwriting framework, ensures accurate portfolio assessments and reduces loss ratios.
Focusing on underserved sectors, Rainbow launched a specialized business owner’s policy (BOP) for restaurants, achieving success across 24 states. By blending cutting-edge technology with deep market expertise, Rainbow addresses the specific challenges of small business insurance with remarkable efficiency and scalability.
Conclusion
Rainbow is redefining small business insurance through its technology-driven and customer-centric approach. By combining seamless quote-to-bind experiences with continuous underwriting capabilities, the company provides innovative solutions for agents, brokers, and policyholders alike. Its flagship business owner’s policy (BOP), tailored to the restaurant industry, has demonstrated remarkable success in 24 states, setting the stage for further expansion.
The $8 million Series A funding, led by Zigg Capital, underscores the confidence investors have in Rainbow’s vision and execution. These funds will enable Rainbow to expand into more business verticals, improve its proprietary technology, and scale its operations nationwide. As Rainbow moves into new states like New York and beyond, it aims to address the unique challenges of small businesses while improving portfolio accuracy and reducing loss ratios.
CEO Bobby Touran and Zigg Capital’s Ryan Orley have expressed strong enthusiasm for Rainbow’s future. With a focus on innovation, scalability, and deep industry expertise, Rainbow is well-positioned to lead a transformation in the small business insurance market, setting a new standard for efficiency and profitability.
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