Fortegra Backs Auto InsurTech Clearcover as Underwriting Partner

The specialty insurer’s support as issuing company and risk participant demonstrates the natural fit between incumbent insurers and InsurTech distribution players.

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Fortegra Financial Corporation (Jacksonville, Fla.), an international specialty insurer and subsidiary of Tiptree Inc. (New York), has announced that it will partner with Clearcover (Chicago), acting as the auto InsurTech provider’s issuing company and as a risk participant.

Donald Light, Director, North America Property/Casualty Practice, Celent.

“Insurtechs focusing on distribution need paper to for issuing policies, and the insurers providing the paper may want financial backup for those risks they are putting on their books,” comments Donald Light, a Director in Celent’s (Boston) North America Property/Casualty Insurance Practice.“Today’s announcement from Clearcover and Fortegra is a good example of this relationship. Clearcover’s aggressive low cost/low premium auto insurance model needs well capitalized partners; Fortegra gets an operational and financial window into InsurTech, along with a reinsurance cushion.”

“We are very impressed with the underwriting, distribution and service model that Clearcover has put together,” comments Joe Alberti, VP, Specialty Products & Programs, Fortegra. “We’ve reviewed several InsurTech submissions over the years, and feel the Clearcover team has one of the best approaches in the market. We look forward to a successful program in a challenging auto environment.”

Through comprehensive auto programs, Fortegra provides partners such as Clearcover with advantages like access to “A” paper, transparent financial reporting, and strong reinsurance capabilities, as well as marketing, legal and compliance support.

Joe Alberti, VP, Specialty Products & Programs, Fortegra.

Natural Incumbent/InsurTech Partnership

“These are exactly the types of partnerships that we expect to see between InsureTechs and incumbent carriers in the digital distribution world,” comments Matthew Josefowicz, CEO of research and advisory firm Novarica. “Established program writers bring product design and risk capacity, while InsureTech MGAs bring customer focus and experience design. Focused distribution partners with market-specific value propositions could be a great way for carriers to stake a claim in the highly competitive general market for personal lines without spending tens of millions on advertising.”

Kyle Nakatsuji, CEO, Clearcover.

“Partnering with Fortegra gives us the ability to sell and underwrite insurance, but more importantly, build a platform that delivers on our promise to our customers: offer the right coverage, in the moments that matter, for the lowest possible cost,” comments Clearcover CEO Kyle Nakatsuji. “Fortegra’s forward-looking vision and support enables us to provide an exceptional insurance experience, from initial touchpoint, to claims, to renewal.”

Fortegra reports that Trean Reinsurance Services, LLC (Wayzata, Minn.) assisted in facilitating the agreement and the placement of reinsurance applicable to the Fortegra-Clearcover partnership.

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Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at or (503) 936-2803.

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