Cover Genius Raises $70M to Expand Embedded Insurance Offerings

Insurance technology firm Cover Genius says it will expand its embedded insurance model following a $70 million Series D funding round.

According to a Tuesday (Nov. 1) news release, the funding round — led by Dawn Capital — will help Cover Genius expand its insurance distribution platform, XCover.

“Customers are dissatisfied with traditional insurers who went missing during the pandemic and consistently deliver low post-claim Net Promoter Scores (NPS) scores,” said Angus McDonald, the company’s co-founder and chief executive.

“Our tech-forward solution focuses on a seamless and transparent customer journey and, in contrast to traditional insurers, delivers a post-claim NPS of +65.”

The release notes the company’s progress since its Series C in 2021, as it has nearly tripled its revenue year-over-year and landed partnerships with companies such as the travel app Hopper, buy now, pay later (BNPL) company Zip, and India-based gig economy apps Ola and Betterplace.

This summer also saw the New York City-based company purchase embedded ticket protection for sellers’ platform Booking Protect for an undisclosed amount.

As PYMNTS noted at the time, the deal lets Cover Genius expand its footprint in the ticketing and live entertainment space with embedded protection for ticket sellers, platforms, and live event companies including SeatGeek, Spectrix, AudienceView and Night Out.

Meanwhile, recent research by PYMNTS finds that insurance companies are at the head of the pack when it comes to offering embedded finance solutions.

Read more: Insurance Industry Takes Lead in Embedded Finance Adoption

Thirty-six percent of financial institutions (FIs) said insurance companies are the types of customers most likely to embrace embedded finance solutions, according to the October edition of the “Embedded Finance Tracker,” a collaboration between PYMNTS and Galileo.

Insurance firms are more likely than companies in three other industries to adopt the technology, the study found, with only 11% of FIs saying the same about the sports industry, 23% in regard to healthcare companies and 31% saying it of retail.

The report notes this is the case for insurance companies across all sizes, from small businesses to major enterprises.