The insurtech’s co-founder and chief executive says the investment will help it expand its ’capabilities into markets equipped for new lines of distribution’
Embedded insurance insurtech Cover Genius has secured $100m (£74.3m) in series C funding.
The investment will be used to expand its global insurance distribution platform and support new e-commerce, property, travel, mobility, auto, B2B and financial services partners.
Embedded insurance provides coverage alongside an individual product or service that a consumer has purchased - the insurance is embedded into the purchasing process.
Cover Genius’ latest funding round was led by Sompo Holdings Asia, which invested $68m (£50.5m) in the insurtech. Venture capital fund manager G Squared and other existing investors also participated in the funding round.
Angus McDonald, Cover Genius’ chief executive and co-founder, said: “With 70% of customers wanting embedded insurance integrated into their online experiences, our XCover distribution platform is helping some of the world’s largest global companies exceed their customer expectations of what insurance can be with a single application programming interface (API) call.
“Our technology, licensed in more than 60 countries and all 50 US states, gives our partners the ability to protect their customers, regardless of location, currency or language.
”This strategic investment will help us expand our capabilities into markets equipped for new lines of distribution.”
This funding round follows a positive six months for the insurtech, which saw it triple its gross written premium (GWP) after signing more than 20 new partners across multiple industries.
Partnering with a frontrunner
Cover Genius was founded in 2014. It is a global insurtech specialising in providing end-to-end embedded insurance to customers including Booking Holdings, Ebay, Wayfair, Intuit and SE Asia’s largest company Shopee.
It offers global capabilities to multiple industries, including property insurance for renters, landlords, homeowners and corporates, fintech and bank insurance programmes, solutions for retailers, gig contractors, logistics platforms, cyber security companies and online travel agencies, rental car aggregators and airlines.
Daniel Neo, Sompo Asia’s chief executive, said: “Given that Cover Genius has been [recognised] as the number one fastest growing global insurtech, according to the Financial Times, we are excited to partner with a frontrunner whose technology is uniquely positioned for a global, platform-based economy.
“The company’s disruptive approach to insurance benefits both customers, who receive a seamless digital experience, and partners that can provide customers [with] global, expandable insurance offerings with dynamic pricing and product recommendations.”
The insurtech’s technologies include XCover, its global distribution platform, which delivers customisable, personalised insurance and warranty products in any country, language and currency.
Cover Genius also offers XClaim, an API for the real-time payment of approved claims, which allows for instant claims payments in more than 90 currencies via various payment methods, including bank transfer, store credit, card top-up and digital wallets.
Larry Aschebrook, G Squared’s founder and managing partner, added: “Cover Genius’ impressive management team has built a global, multiline insurance offering with what we believe to be unrivalled breadth.
“The company has partnered with a number of top tier companies to utilise its insurance distribution platform and has demonstrated clear recurring revenue growth with those partners.
”We view the unique underwriting customisation as a key differentiator and are delighted to support Cover Genius in this exciting next chapter.”