Reflections on HazardHub's First Year: A Q&A with Bob Frady, Vice President of HazardHub at Guidewire

In August 2021, Guidewire acquired HazardHub, a leading provider of property hazard data and risk scores in the United States. HazardHub co-founder Bob Frady sat down with me to discuss what influenced HazardHub's decision to join Guidewire and the progress that has been made since the acquisition.

Q: It has been one year since Guidewire acquired HazardHub - how's it going?

Frady: Oh my gosh, it's been a year! Sometimes it seems like we've just joined Guidewire and other times it seems like we've been part of the fabric of the company forever - which I think is a good thing.

Overall, it has been great. Our Q4 ARR numbers aren't final yet, but we believe that HazardHub is on track to double in revenue since the acquisition and that's what we're aiming to do again next year. Myself, John, and the rest of the team are still here and still driving innovation. We're fully integrated with the Guidewire Analytics team and a big part of the core Guidewire team as well.

Q: Why did you choose to sell to Guidewire when you could have accepted funding from venture capitalists?

Frady: The idea of selling your business is never an easy one. There are lots of ways to continue to grow and scale. Unlike many insurtechs, HazardHub was already a profitable business. One of the things we knew was that - for us as founders of HazardHub - the actuarial table actually meant something.

John, Brady, and I wanted to find a home for our business, and that was about more than the maximum valuation we could extract from a transaction. We were not tied up with the idea of, "My company is worth $XX million dollars," which gave us the freedom and luxury of being selective.

We wanted a place where we could thrive. We wanted a place where we could continue to grow. We wanted a good home for our employees so that the people who did the hard work to get us here could grow and thrive as well. We wanted to be part of a company that shared our vision of using data to help people protect their most significant investments - their homes and businesses.

Taking money from VCs was certainly an enticing option but doing so would have extended our timeline 5-10 years from today. Plus, accepting money can be challenging. When we weighed the pros and cons of selling versus raising and looked at all the possible homes for our business, it became clear that Guidewire was where we wanted to be. Thankfully, it worked out well for everyone!

Q: Tell me about the benefits and limitations associated with being part of Guidewire.

Frady: The most striking aspect of being part of Guidewire is the collegiality of the employees. People are treated with respect and thoughtfulness. It really is a wonderful place to work. Adding 15 people to our sales team certainly did not hurt, either. The team brings us into customer conversations that we only dreamed of going into before becoming part of Guidewire.

The limitations are the same limitations that you have in any big company - lots of planning and lots of conversations about planning. As a start-up it's all about picking a lane and executing, but to continue to grow successfully and profitably, planning is critical. As restless as I get during the planning process, it really is important for our business.

Q: How does HazardHub work with Guidewire?

Frady: Every underwriter needs data. Every actuary needs data. HazardHub provides that data. We are fully integrated with PolicyCenter - both for cloud and on-premises customers - allowing users to instantaneously access HazardHub's cutting-edge data. We like to say, "if data is the new oil then HazardHub greases the skids to success!"

Guidewire Analytics has an incredible mission - to make the world a more insurable place. It's a lofty goal and one of the key reasons why we decided to join Guidewire. If you're not choosing a lofty goal, then why are you in business in the first place? HazardHub is a key component of that goal because insurers rely on the data it provides to make both faster and smarter decisions.

Q: What does the future look like for HazardHub?

Frady: Our strategy is simple - More data. Better data. More places. Beyond that, you will have to wait and see!

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