Cover Whale Secures US$27.5m from Morgan Stanley EC

The funding will provide for a strong balance sheet
Morgan Stanley Expansion Capital has signed a large investment sum in Cover Whale.

Cover Whale Insurance Solutions, a leading insurtech specialising in connected insurance for commercial auto, has announced funding of US$27.5 million in debt and equity from investment funds managed by Morgan Stanley Expansion Capital.

Support for Continued Growth and Safety Initiatives

The funding round, which also had existing debt investors convert into the Series A preferred, will support Cover Whale’s continued growth and progress toward developing trucking insurance and improving safety on America’s roads.

The funding will provide for a strong balance sheet supporting Cover Whale’s growing business. Known for its ability to provide agents and their trucking clients with lightning-fast policy quotes and bound coverage, Cover Whale is actively investing in its technology and operating platform to further improve speed to quote and improve service quality.

Dan Abrahamsen, CEO of Cover Whale

"Cover Whale was built from the ground up to transform commercial auto insurance with technology at our core," says Dan Abrahamsen, CEO of Cover Whale. "We believe this investment from Morgan Stanley Expansion Capital will support our continuing mission to deliver the industry's leading trucking insurance experience, building on the positive impact we've already made for our agents, drivers, and the general motoring public."

“We believe Cover Whale is a rare instance where the team has built a large-scale insurtech MGA and achieved consistent profitability while remaining capital efficient” says Nick Nocito, Executive Director of Morgan Stanley Expansion Capital. “We are looking forward to partnering with the team as they continue to grow the platform and pursue new avenues of growth.”

Cover Whale, an insurtech company founded by seasoned professionals in insurance and technology, leverages advanced technology, underwriting expertise, and data analytics to create innovative insurance solutions for the commercial auto industry. As a managing general agent (MGA), Cover Whale manages over 15,000 active policyholders and concluded 2023 with US$225 million in gross written premiums (GPW) while maintaining leading industry loss ratios.

Cover Whale's distinctive Driver Safety Program integrates insurance coverage with telematics and real-time driver coaching, aiming to reduce claims, enhance driver safety, and save lives on American roads. The company offers its services through more than 4,000 active agents, providing the fastest and most user-friendly online quote and bind process in the industry. Cover Whale believes in rewarding safe driving, offering the most competitive insurance rates to the safest drivers.

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