(Image source: CoverHound subsidiary CyberPolicy homepage.)
CoverHound (San Francisco), an online insurance comparison shopping platform, has announced that it has raised $58 million in a Series D funding round. The round was led by global insurer Hiscox (Bermuda), accompanied by other insurers’ and their venture capital arms, including Chubb (Zurich), Aflac Ventures (Columbus, Ga.) and MS&AD (Tokyo). Allen & Company LLC assisted CoverHound on the Series D round, which brings the total amount of capital raised by the company to over $112 million since its 2010 launch.
CoverHound reports that it has sold more than 200,000 business and personal insurance policies. Via its subsidiary CyberPolicy, CoverHound addresses small businesses’ exposure to cyber risk, giving them the opportunity compare, quote and buy cyber insurance online. In addition to fueling the continued development of CyberPolicy, the current funding round allows CoverHound to expand its offices beyond San Francisco and Westlake Village, California to Charlotte, North Carolina and drive the company’s international expansion efforts into Japan and other global markets, the company reports.
CoverHound says the new round will also reinforce its branded partnership strategy, which will feature new banks, insurers and technology providers during 2019. CyberPolicy began providing cyber insurance options through Progressive Insurance in Nov. 2018, following its partnership with Hiscox to offer cyber insurance, initiated in May 2018.
“We are delighted to have this opportunity to work more closely with one of the few truly digital agencies that shares our passion for making material strides in the changing SMB landscape,” comments Kevin Kerridge, Executive VP, USA Small Business Insurance, Hiscox. “CoverHound, as reflected more recently through its CyberPolicy brand, is leading the charge in providing a best-in-class digital cyber solution for businesses, and we are excited to be part of that both as a carrier and the lead investor in this funding round.”
Shifting Pattern of Digital Insurance Distribution
Digital insurance distribution will continually shift to more non-traditional insurance brands, asserts CoverHound CEO Keith Moore. “CoverHound has built the leading P&C platform to enable any brand’s customers to easily quote, compare and buy personal, business and cyber insurance,” he says. “In an industry that’s been heating up with a flurry of new entrants, we feel blessed that we know exactly who we are and what we excel at. We have no desire to be an insurance carrier or an online search engine purely for price comparisons. CoverHound and CyberPolicy are digital, trusted advisors for curated choice for anyone needing personal or business insurance.”
“We’re honored to have such legendary industry leaders from around the world supporting us in our latest funding round. As both a technology and insurance company, we’re in a unique position to empower trusted brands for the digital distribution of personal and business insurance,” Moore adds.