Cover Genius has secured $70m in a new funding round at the same time as the rest of the insurtech industry is suffering a fall in investment.
The round follows from the $100m Series C raise Cover Genius bagged last year. The startup did not provide a valuation following the raise.
Cover Genius’ fortunes is intimately tied to the boom in so-called embedded finance. Embedded finance is a catch-all term for technology that enables non-financial services to offer financial services.
The insurtech startup does the same by empowering enterprises across multiple industries – including airlines, travel and rental companies, retail, financial services, real estate, logistics, ticketing, gig economy and benefit companies – to access insurance coverage.
“Cover Genius is rethinking insurance distribution with a tech-forward platform that enables partners and end-customers to provide and access protection at the point of need, ” said Dan Chaplin, principal at investment firm Dawn Capital.
“Embedded insurance is a rapidly growing segment of the market, and Cover Genius has built a leading platform that is globally enabled, multi-line and end-to-end.
Cover Genius said that the cash injection will be used expand the insurtech’s global insurance distribution platform and support new ecommerce, property, travel, mobility, auto, B2B and financial services partners.
The startup is available across the US and in 60 different countries.
Cover Genius secured its round as insurtech investment is dropping overall
The timing of the Cover Genius Series D is interesting as it comes at a time when investment into the insurtech industry has dropped from its Covid-19 high.
Investment into the industry boomed last year. The uptick in deals was fuelled by a realisation from the insurance industry that they needed to overhaul their traditional models and invest more in technology. For many insurers, the pandemic highlighted how old ways of doing things simply weren’t sufficient in the fast-pace world of today.
As a result, investment jumped in the sector. Research firm GlobalData’s Technology Intelligence Centre recorded 326 venture financing, private equity, debt offering and equity offering deals in the insurance industry worth a total of $18.2bn in 2021. That’s up from the $11.2bn raised in 2020 across 274 deals.
However, it seems like the same market uncertainties that have troubled the overall tech industry this year have also affected insurtech funding.
The insurtech industry has only secured $6.2bn across 182 rounds so far in 2022, according to GlobalData.
GlobalData is the parent company of Verdict and its sister publications.