Cover Whale Insurance Solutions, an insurtech startup headquartered in California, has raised $15.5 million in seed funding to facilitate access to insurance for millions of people.
The seed funding round was led by Ambac Financial Group and TigerRisk Partners’ Applied Financial Technologies subsidiary. Dan Abrahamsen, Cover Whale Founder and CEO, referred to the round by stating:
“This funding round is an exciting time for the Cover Whale team. The support of such sophisticated investors has been a significant show of commitment to our vision. This level of funding enables Cover Whale to invest further in our technology-enabled proprietary platform, as well as continue to attract a team of top industry talent.”
Cover Whale was founded in 2019 with the mission to revolutionize the insurance industry by harvesting the latest technologies in data collection, data analysis, and machine learning to facilitate access to commercial auto insurance coverage. The platform developed by the insurtech startup can be used by owners, agents, and brokers alike, providing them with a dedicated account representative and specialized staff to oversee day-to-day maintenance.
Cover Whale makes use of great volumes of real-time data to allow it to intervene when negative driver behavior is detected, allowing the reduction of loss ratios and insurance costs by instantaneously correcting such behavior. Claude LeBlanc, President and Chief Executive Officer of Ambac, said about the startup’s approach:
“Insurtech platforms like Cover Whale, that are able to use data driven underwriting to quickly and profitably bind coverage within minutes of a submission, are market leaders in providing innovative distribution solutions in the commercial auto space.”
According to IBISWorld, the commercial auto insurance industry in the United States represented $51.5 billion in 2021, up from $39 billion in 2016. This increasing demand has allowed the platform to experience a fast rate of growth over the past year, with its team expanding from only 5 employees to more than 80 employees and contractors. Now, the insurtech startup is aiming to become a major player in the industry by helping those who require commercial auto insurance during all stages of the coverage process.