Cover Genius raises $12M as COVID accelerates need for insurance tech

Insurance technology specialist Cover Genius has raised $12 million to expand its product suite and partner network.

King River Capital, which contributed funding to the company’s $10 million Series B raise in November 2019, led the investment. Through a loan, Leap Capital is also supplementing the round.

With the funds, Cover Genius aims to help technology and e-commerce brands across Southeast Asia, India, the United States and Europe accelerate growth and optimize protection products offered at the point of sale or when customers sign up.

Cover Genius co-founder and CEO Angus McDonald says the latest funding round, backed by the company’s existing shareholder group, shows continued investor support for the insurtech platform’s international expansion plans.

“Our global partner network is rapidly growing and this recent raise will support the ongoing development of high volumes of strategic partnership deals, across a broad range of insurance lines, verticals and geographies,” he says.

According to Research and Markets, the COVID-19 pandemic has accelerated the addressable market for insurance products that are embedded into points of sale or signup. The global e-commerce market is expected to grow from $1,808.5 billion in 2019 to about $2,405.3 billion in 2020 with the global e-commerce market expected to reach $3,056.3 billion at a compound annual growth rate of 14% through 2023.

“Customers want to protect their purchases, big or small, and given the option many will take insurance cover at the point of sale from their favorite online brands. The confidence this gives customers is driving an increase in purchase volume with 32% of customers happy to buy and spend more if offered insurance,” McDonald says.

“Our partners are certainly ahead of the curve and can see the value of insurance not only to their customers, but also their business.”

Founded in 2014, Cover Genius enables travel partners such as Booking Holdings, Despegar, and Etravali Group to customize, add on and embed insurance offerings.

Its technologies include XCover, a distribution platform providing coverage for any line of insurance in any country, language and currency.

The brand, which has produced regulated products in more than 60 countries and all U.S. states, has offices in New York, San Francisco, London, Amsterdam, Tokyo, Singapore, Seoul, Kuala Lumpur, Manila and Sydney.

Last year, Cover Genius participated in a Launch pitch at Phocuswright Europe. See its pitch and follow-up interview with PhocusWire below.

*Correction: This post incorrectly said Cover Genius raised $15 million; it is $12 million.