Cover Genius raises AU$15m to expand partnerships
Successful insurtech Cover Genius is expanding its network globally with an AU$15m funded growth plan.
Cover Genius currently provides insurance product services to a range of globally prominent online companies.
The expansion plan comes in tandem with the launch of its parcel of products on Shoppee Thailand, a leading, Singapore-owned e-commerce platform that operates across the Far East.
Since September 2020, Cover Genius has worked with Tile, Wayfair and several other international ecommerce platforms, to launch integrated commercial, shipping and product insurance.
Recently-formed partnerships have also seen the insurtech company increase its geographic reach and capabilities, supported by a host of licences and a reputable platform used by a growing network of global leaders including Booking Holdings, National Express, AXS, eBay and more.
Cover Genius supports integrations for leading e-commerce companies in the US, Europe and India. The company has found its services increasingly in demand as operatives require assistance to speed up their expansions with bespoke protection products at the sign-ups and POS.
The sign-up and POS sector has expanded since the COVID-19 pandemic outbreak, with the worldwide e-commerce market forecasted growth predicted to top $3,056bn at a CAGR of 14% by 2023.
Angus McDonald, CEO and Co-Founder of Cover Genius, commented on the recent funding boost, saying it revealed strong investor support for the company’s future plans.
He said, “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."
Explaining why the customer uptake of insurance has risen this year, McDonald continued: “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 favourite 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. Our partners are certainly ahead of the curve and can see the value of insurance not only to their customers but also their business.”
Partner at King River Capital, Chris Barter, agreed, saying Cover Genius was fulfilling the requirements of leading ecommerce businesses that were searching for international insurance solutions.
“It’s no surprise that many businesses are looking at partnerships and integrations that can help grow their business in these challenging times. Cover Genius has a long history of actively contributing to the growth and prosperity of some of the world’s biggest ecommerce brands and we are excited to see them expand so quickly into new territories and verticals.”
TrueMotion insurtech acquired by Cambridge Mobile Telematics
One of the world’s leading telematics insurtechs, Cambridge Mobile Telematics, was launched in 2010 and powers 65 enterprise programmes in 28 countries.
Meanwhile, TrueMotion, which launched in 2012, has enjoyed significant success as a telematics operator, raising US$10mn in its seed funding round in 2010, and then partnering with the motor insurtech Noblr in 2019.
TrueMotion has also entered the European market, collaborating with LB Forsikring to promote safe driving in Denmark.
The joining of the companies means TrueMotion’s 150-strong workforce will join Cambridge Mobile Telematic’s already established team, along with their client list, which includes Travelers, Farmers, and Progressive.
The new company will focus on increased interest in using telematics for crash reconstruction in personal lines claims and more innovation in the telematics space.
Speaking about the acquisition, William Powers, CEO, and co-founder of Cambridge Mobile Telematics, described the move as an opportunity to explore new markets, expand throughout the US and bring telematics to a much wider customer base.
"With this acquisition, we will use our world-class talent, technology, and scale to help our partners overcome the complex challenges of global road safety,” he added.
Ryan McMahon, VP of insurance and customer affairs for Cambridge Mobile Telematics, explained that expanding the company with additional talent and customers would help meet the demands of a growing telematics market. He also quoted data from a study by J.D. Power which revealed that personal auto telematics users have doubled in five years to 16% of policyholders.
McMahon told the press, “This market is rapidly expanding, and building more capabilities is more important than ever,” McMahon says. “Both companies follow similar philosophies and grew up in similar ecosystems, and now we’re bringing those cultures together.”
He continued, “Telematics is absolutely the future of commercial auto and rideshare, and it’s kind of a step up beyond the normal telematics."
McMahon added, “We will not only widen our lead in smartphone telematics, but also use our combined talent to invent new products for risk measurement, contextual telematics, and crash mitigation across emerging mobile, IoT, connected-car, video, and sensing technologies.”
Five reasons why telematics is in demand
- It reduces fuel costs and increases operational efficiency. This is a consideration for most commercial fleets given the rising costs of fuel
- The technology enables fleet managers to plan operations with greater precision by providing exact locations, timescales, and speeds of vehicles.
- It improves driving standards and monitors driver behaviour, reducing detours and ensuring responsible driving.
- It helps fleet health and maintenance by monitoring the health of operational vehicles.
- It increases corporate social responsibility in terms of care for the driver, the vehicle, the impact of driving in terms of emissions, and also the security of the vehicle itself.
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