The commercial auto insurtech Cover Whale is a leading solutions provider to agents and brokers as it exceeds $100mn in written premiums
Cover Whale, a commercial car insurtech company in New York, has announced that it has surpassed the US$100 million mark in written premiums. The technology-driven solutions provider provides substantially faster and more frictionless services to agents and brokers than traditional insurers.
Cover Whale’s startup success
The insurance startup was launched in 2019 and made news last year after rapidly scaling and partnering with Quantum Assurance International. Cover Whale has quietly transformed the world of commercial auto insurance during this time, according to reports, by providing cutting-edge offerings and quick customer service to agents and brokers.
To satisfy the urgent needs produced by the epidemic, the firm flipped the typical insurtech strategy of fundraising first, service second, shortly after its inception.
Cover Whale has disrupted the commercial car business with its technology, data, and machine learning analytics, providing a future-driven and continuous underwriting methodology to market. The company’s client base has grown by about 400 percent in the last year.
The strategy of scaling insurtechs
Cover Whale has made no apologies for its aggressive expansion plans. In October 2021, they announced a $15.5 million seed round, the largest North American insurtech seed capital to date. As of April 2022, the corporation is also supplying non-admitted products across much of the United States, and has just started rolling out its admitted product offering in Florida and Georgia, with North Carolina, South Carolina, and Nevada to follow in the coming weeks.
Executives claim that Cover Whale’s strategy is built on a two-pronged approach. To begin, the insurtech delivers services to agents and brokers that are in accordance with the most recent insurtech advances in terms of speed and flexibility. In addition, the organisation educates policyholders on safe driving techniques, resulting in a lower risk situation.
“To our knowledge, we are the fastest growing insurtech to $100 million in under two years,” Kevin Abramson, President of Cover Whale, said of the insurtech’s latest milestone. Perhaps even more impressive is the fact that we are providing our carrier partners with market-leading loss ratios. “InsurTech 2.0 is all about achieving hyper-growth without sacrificing profitability.”
“We also encourage all of our policyholders to be better drivers by advising them on basic methods to enhance their driving behaviour and make the roads safer,” he stated. This coaching is based on driver behaviour and real-time data.”
While other insurtechs wait for initial investment before offering services, Cover Whale’s strategy was to construct the software and start offering products and services when the market demanded it, such as when truck drivers were pandemic first responders.
“The globe was figuring out how to work and buy from home in March and April 2020, creating an urgent demand for many more trucks on the road.”
“While typical insurance carriers required agents and brokers to wait days, if not weeks, for a quote—or denial,” he continued, “Cover Whale was able to get drivers’ policies bound in a fraction of the time.”