US-based independent insurance agency Coverance Insurance Solutions has secured a funding of $10.5m in a round led by CUNA Mutual Group.

The funding round was also joined by the company’s existing investor Strandview Capital.

Coverance focus on helping seniors in the Medicare insurance market to purchase the optimal policy and save money.

The company offers Medicare Insurance platform to CUNA Mutual Group, which is said to serve 95% of credit unions and 30 million consumers.

This Covid-19 pandemic highlighted the critical importance of Medicare insurance for seniors and accelerated the trend towards centralised call centres as opposed to the traditional way of serving insurance through in-person insurance agents, noted Coverance.

The proceeds from the financing will be used by Coverance to support its future growth strategy in the US Medicare insurance market, which is estimated at over $24bn.

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Coverance CEO and founder Chris Mullins said: “We are very excited to work with CUNA Mutual Group and explore opportunities to offer Medicare insurance options to credit union members.

“We use senior-focused marketing, data analytics and automation to improve how seniors purchase Medicare insurance.”

CMFG Ventures, the venture capital arm of CUNA Mutual Group, led the financing.

CMFG Ventures president Brian Kaas said: “We invested in Coverance because of their commitment to helping seniors obtain the right Medicare Insurance policy to meet their individual needs.”

Strandview managing director Mike Sekits added: “The Coverance team has deep experience marketing complex financial services to seniors.  They are employing a proven business model – including a highly efficient call center, state-of-the-art technology, and a highly effective marketing strategy – to build a leading brand in the Medicare insurance market.”