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Exclusive: Boundless Rider revs up with $4 million

Oct 30, 2023
an illustration of a motorcycle jacket covered in money patches

Illustration: Tiffany Herring/Axios

Boundless Rider, an insurtech focused on motorcycle and other powersport riders, raised $4.25 million in new funding from Assurity Life Insurance and existing investors, the company tells Axios.

Why it matters: There are roughly 20 million powersports vehicles in the U.S., but the market remains underserved.

How it works: Boundless Rider is a full-stack managing general agent (MGA), and manages everything including the collection of application data, underwriting, generating policy documents, claims, and billing.

  • The company designed its insurance product specifically for owners of powersport vehicles — such as motorcycles, ATVs, UTVs, scooters and mopeds.

Zoom out: There are about 20 million powersports vehicles in the U.S., but typically they only account for 3-5% of an insurance carrier's book, says Boundless Rider CEO Blair Baldwin.

  • "If 95% of your business is this one thing... you're going to invest all of your time and resources into the main [product]," he says. "Because of that, there's just been very little product innovation in the motorcycle and powersports space."

Zoom in: One development is a mobile app that Boundless Rider will use to collect trip and behavioral data.

  • Auto insurers have been experimenting with this data for over a decade but it hasn't yet made its way to powersports coverage.
  • They're also developing a proprietary crash algorithm for the app that could connect to a call center for triage to reach 911 in the case of an accident.

In addition to adding Assurity to its cap table, Boundless Rider has partnered with the carrier to offer accidental death and dismemberment insurance to its policyholders.

  • "The folks that underwrite motorcycle insurance... look at it from the lens of just property and casualty insurance and don't recognize the risk of life or disability that comes from these vehicles," Baldwin says. "Which is one of the reasons we felt it was really important to bring a life and health insurance carrier into the mix."

State of play: After getting its start in Texas, the company is now also available in Arizona.

  • It has also received approval and plans to launch in three more states — Ohio, Illinois, and Pennsylvania — in the coming months.

Of note: Existing backer American Family Ventures led the round, which also included investment from Belmont Capital.

  • Altogether, the company has raised $11 million since being founded in 2021.

Editor's note: This article has been corrected to remove SiriusPoint as an investor. The company updated the information after publication.

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