(Kelsey Grammer, celebrity spokesperson for Coverance Insurance Solutions. Source: Coverance.)
Coverance Insurance Solutions has announced a $10.5 million financing led by CUNA Mutual Group (Madison, Wisc.), with participation from existing investor Strandview Capital (El Segundo, Calif.). Coverance is a Long Beach, Calif.-based independent insurance agency that helps seniors navigate the complex Medicare insurance market to obtain the optimal policy and save money.
“We are very excited to work with CUNA Mutual Group and explore opportunities to offer Medicare insurance options to credit union members,” comments Chris Mullins, CEO and founder, Coverance. “We use senior-focused marketing, data analytics and automation to improve how seniors purchase Medicare insurance.”
Coverance reports that it is rapidly building a trusted brand with its celebrity spokesperson Kelsey Grammer, from television shows Cheers and Fraser. “The current COVID-19 pandemic highlights the importance of proper Medicare insurance for seniors and has accelerated the trend toward centralized call centers versus how much of the industry has been traditionally served through in-person insurance agents,” a company statement says. Coverance will provide a Medicare Insurance platform to CUNA Mutual Group, which serves 95 percent of credit unions and 30 million consumers.
CMFG Ventures, the venture capital arm of CUNA Mutual Group, led the financing round. “We invested in Coverance because of their commitment to helping seniors obtain the right Medicare Insurance policy to meet their individual needs,” comments said Brian Kaas, President of CMFG Ventures. CUNA Mutual Group has $25 billion in assets and offers consumer and commercial insurance, retirement and investment solutions, and business solutions including data and analytics, lending capabilities and marketing services.
The U.S. Medicare Insurance market is estimated at over $24 billion and growing rapidly. Over 50 million people qualify for Medicare Insurance, and over 10,000 seniors turn 65 every day. By the year 2035, the U.S. population of seniors over 65 will surpass teens under 18 for the first time in history.
Deep Experience Marketing Complex Financial Services to Seniors
Strandview Capital developed the initial business plan with the Coverance management team and provided the capital to launch and rapidly grow the business.
“We have sponsored this management team at two previous successful companies employing a very similar business model,” comments Mike Sekits, Managing Director, Strandview. “The Coverance team has deep experience marketing complex financial services to seniors. They are employing a proven business model—including a highly efficient call center, state-of-the-art technology, and a highly effective marketing strategy – to build a leading brand in the Medicare insurance market.”