Clearcover, a managing general agent whose artificial intelligence-driven platform focuses on auto insurance, has raised $50 million in new financing. The money is designed to accelerate further national growth and also fuel the company’s plans to become a full-stack carrier doing business across the country.
Kyle Nakatsuji, Clearcover’s co-founder and CEO, said the investment reflects the Illinois-based InsurTech’s success so far in rethinking how insurance is both sold to and serviced for customers.
“This investment enables us to continue delivering better coverage – for up to 230 million licensed US drivers – for less money,” Nakatsuji said in prepared remarks.
Clearcover said that OMERS Ventures led the Series C financing. Previous investors American Family Ventures, Cox Enterprises and IA Capital Group also participated. The company announced a $43 million Series B financing a year ago, and with the new round, has raised more than $104 million since its 2016 launch.
Clearcover’s financing infusion will continue to propel its growth and expansion, the company said, both in existing markets and in new states throughout the U.S. That will involve, in part, integrating additional distribution channels in the automotive and financial services space. The team also said it will hire more employees in the engineering and data science spaces with local and remote options.
Clearcover claims it has tripled policy sales year over year in 2019 while quadrupling premium. The company currently does business in Arizona, California, Illinois, Ohio and Utah. The company also said it is pursuing plans to become a full-stack carrier in all 50 states and expand its partnership footprint.
Clearcover’s data-driven platform uses artificial intelligence to make coverage recommendations. The company pitches its API platform as a way to streamline the insurance buying process and eliminate the need for excessive marketing, and it said the process boosts efficiency and can save customers 50 percent on car insurance.
Source: Clearcover