Largest North American Insurtech seed round to-date
New York, NY—October 5, 2021—Cover Whale Insurance Solutions, Inc. (“Cover Whale”), an Insurtech MGA focused on disrupting the commercial auto space, announced the completion of a $15.5 million fundraising led by investors Ambac Financial Group, Inc. (NYSE:AMBC) (“Ambac”) and TigerRisk Partners’ Applied Financial Technologies subsidiary.
“This funding round is an exciting time for the Cover Whale team. The support of such sophisticated investors has been a significant show of commitment to our vision,” said Cover Whale Founder and CEO Dan Abrahamsen. “This level of funding enables Cover Whale to invest further in our technology-enabled proprietary platform, as well as continue to attract a team of top industry talent.”
Cover Whale was built on a foundation of technology, data, and machine learning analytics to transform the commercial auto segment and bring to market a forward-looking and continuous insurance model. The efficiency driven by Cover Whale’s technology platform reduces the need for the traditional resource-consuming underwriting process, allowing it to offer instantaneous quotes from multiple carrier partners.
The company’s proprietary platform also enables Cover Whale to leverage real time data in great volume. This, coupled with the ability to intervene and instantaneously correct negative driver behavior, will reduce loss ratios and therefore lower the overall cost of insurance.
Claude LeBlanc, President and Chief Executive Officer of Ambac stated, “We are pleased to be a lead investor in Cover Whale as the company continues to grow its tech enabled platform using leading, propriety AI driven data analytics to profitably underwrite drivers in the commercial auto space.” Mr. LeBlanc continued, “Insurtech platforms like Cover Whale, that are able to use data driven underwriting to quickly and profitably bind coverage within minutes of a submission, are market leaders in providing innovative distribution solutions in the commercial auto space.”
In the past year, Cover Whale has grown from just five employees to over 80 employees and contractors, adding key leadership positions as well as strengthening vital backend departments. Cover Whale’s growth in the space has been unmatched; it prides itself on being the antithesis of Insurtechs as it became cash flow positive earlier this year with a strong focus on bottom line profitability.