Multiple carriers participated in CoverHound’s new $58 million Series D financing, money the online insurance comparison shopping platform plans to use to fuel global expansion.
Hiscox led the round, with Chubb, Aflac Ventures and Japan’s MS&AD also participating, and CoverHound said it worked with investment bank Allen & Company LLC on this latest financing. Including the new round, CoverHound has raised more than $112 million since its early 2010 launch.
Plans call for using the cash infusion, in part, to fuel continued development of CyberPolicy.com, CoverHound’s platform dedicated to delivering online quotes for cyber insurance. CoverHound will also expand its offices beyond San Francisco and Westlake Village, Calif. to Charlotte, N.C., and continue efforts to expand into Japan and other global markets. As well, the new series D financing will support CoverHound’s pursuit of more partnerships, though the company said it already has a number of agreements with banks, large insurers and technology providers lined up for 2019.
Over the past eight years, CoverHound claims it has sold more than 200,000 policies (beyond cyber, it also generates online quotes for personal auto and small business insurance).
As far as CyberPolicy, the platform began providing cyber insurance options through Progressive Insurance in November 2018, with an eye on the small business market. In May 2018, CoverHound partnered with Hiscox to offer cyber insurance through CyberPolicy. CoverHound overall said it works with carriers including Chubb, Hiscox, Progressive, Liberty Mutual, biBERK, Safeco, Nationwide, Mercury, Hartford Steam Boiler,
CoverHound CEO Keith Moore said the company is aware of a number of new entrants into the digital insurance distribution market, but said the company plans to stay the course exactly as it is.
“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,” Moore said in prepared remarks. “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.”
Moore added: 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.”