Cover Genius secures £61m in latest funding round

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The funding will help the insurtech boost its business growth and expand its XCover distribution platform, it says

Embedded insurance insurtech Cover Genius has raised $70m (£61m) in a Series D funding round, led by Dawn Capital.

Helena Kazi - GIGANOMICS

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Investors GSquared, King River Capital and New York based Atlas Merchant Capital also participated in the funding round.

Cover Genius said the funds would assist in its business growth and expansion of its global insurance distribution platform – XCover.

It follows the insurtech securing $100m AUD (£55m) in a Series C funding round, led by Sompo Holdings (Asia), in September 2021.

Angus McDonald, chief executive and co-founder of Cover Genius, said: “We’ve always been strategic about our approach to fundraising and closing our highest-ever funding round in a challenging environment for raising capital reinforces the strength of our embedded business model.”

Evolving industry

Dawn Capital’s principal Dan Chaplin, meanwhile, said he was impressed with the insurtech as it was “rethinking insurance distribution with a tech-forward platform that enables partners and end-customers to provide and access protection at the point of need”.

Read: Cover Genius secures $100m in funding to expand embedded insurance platform

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“Embedded insurance is a rapidly growing segment of the market and Cover Genius has built a leading platform that is globally enabled, multi-line and end-to-end.

“They’re working with some of the world’s largest platforms in multiple industries and have combined exponential growth this year with an exceptionally strong business model.”

Since Cover Genius’ Series C funding the insurtech has reached $1.1m (£982k) in daily gross written premium (GWP), which it claims is nearly triple its year-on-year revenue.

According to Companies House, Cover Genius’ reported GWP of £8.6m for the year ending June 2021 (September 2022).

McDonald further noted that he hopes the firm’s “tech-forward solution” will mitigate customers’ dissatisfaction with traditional insurers, who “went missing during the pandemic” and “consistently” delivered “low post-claim Net Promoter Scores” (NPS).