Cover Genius lands $70M infusion to grow its embedded insurance business

News Summary

  • They found that traditional insurers were difficult to work with because every country the co-founders wanted to target required a separate insurance agreement with separate country leads.In creating Cover Genius, McDonald and Bayley worked to gain licensing and approvals for embedded insurance in most major countries around the world.
  • Unlike typical insurance plans, embedded insurance like Cover Genius’ is bundled with the purchase of a product or service, offered in real time or at the point of sale.Ridesharing app Ola uses Cover Genius to offer insurance to both drivers and riders.
  • Image Credits: Cover Genius“We strongly believed in the embedded insurance model, which is the ability to protect customers at the point of sale or sign-up, and that there would be a major value shift away from direct-to-consumer and traditional insurers toward digital platforms partnering with insurtechs,” McDonald continued.
  • Partners achieve bottom-line growth and stickier customers and insurers benefit from a data-rich distribution channel.”There’s no doubt that embedded insurance is the hot new thing in insurtech.
  • A 2019 survey by the Geneva Association, a global association of insurance companies, found that more than half of people (53%) have had a bad insurance experience.
  • “In the past, they’ve either had experience working with traditional insurers, who negatively impact the customer experience and invariably cause churn and backlash against their own brand, or they’ve tried to engage with traditional insurers and have given up because all the ‘heavy lift’ otherwise sits with them.”
In 2014, Angus McDonald, the former head of publisher partnerships at Yahoo (full disclosure TechCrunchs parent company), teamed up with exGoogler Chris Bayley to found Cover Genius, an insurtech [+5511 chars]