American Family Insurance joined onto a new $43 million financing round for Clearcover, a managing general agent with an artificial intelligence-driven platform focused on car insurance.
The Chicaco, Ill.-based InsurTech startup said its Series B financing was led by Cox Enterprises. American Family Ventures also participated, along with IA Capital Group, Lightbank and Hyde Park Angels. Silicon Valley Bank provided debt financing.
Clearcover CEO Kyle Nakatsuji said the new financing will help fuel expansion into new states, hiring, the pursuit of new distribution partners and further investment in its data-driven platform, which uses artificial intelligence to make coverage recommendations. Clearcover pitches its API platform as a way to streamline the insurance buying process and eliminate the need for excessive marketing. The company also asserts that the process boosts efficiency and can save customers 50 percent on car insurance.
“It’s gratifying to see our customer-focused, technology-driven business model resonating with the market and we’re excited to partner with Cox Enterprises on our mission to provide millions of drivers across the U.S. with better insurance experiences and lower prices,” Nakatsuji said in prepared remarks.
Nakatsuji said Clearcover would be hiring more than 50 people for its Engineering, Data Science and Customer Advocate teams.
Spencer Boice, senior director of Strategy and Corporate Development at Cox Enterprises, said in prepared remarks that Clearcover “shares our vision of using data and technology to drive smarter connections and more convenience online.”
Clearcover announced an initial $11.5 million funding round in 2017 led by Lightbank, with participation from Greycroft Partners, 500 Startups, Silicon Valley Bank and a number of unnamed insurance and fintech investors. The company formally launched in early 2018, and now has distribution partners in the automotive, insurance and financial services industries including Cars.com, The Zebra and Chime.
In October 2018, Clearcover disclosed that an email marketing account was hacked but said it reported the incident to local and federal law enforcement, and partnered with a forensic investigator to understand what happened. The company noted at the time that it followed IT security/law enforcement advice, changing passwords and pursuing security scans.