Cover Genius Raises $80 Million to Grow Embedded Protection Offering

InsurTech Cover Genius has raised $80 million in Series E funding to grow its embedded protection offering.

The company will use the fresh capital to expedite its growth plans and to invest in new technology like improved digital insurance distribution solutions, artificial intelligence (AI)-powered claims handling and additional protection solutions to be made available on the platform, Cover Genius said in a Wednesday (May 15) press release.

“This display of trust from our investors highlights the resilience of our embedded business model and potential for growth, particularly as we strategically focus on key markets like travel, retail, ticketing and logistics,” Angus McDonald, CEO and co-founder of Cover Genius, said in the release.

Since the company’s launch in 2014, Cover Genius has facilitated insurance distribution through its global distribution platform, XCover, according to the release.

This platform enables partners to provide a wide range of insurance and other types of protection across a variety of market segments, in both bundled and unbundled solutions, and delivered at the most suitable prices and times, the release said.

Among the brands that collaborate with Cover Genius are Uber, Ryanair and eBay, per the release.

In 2023, Cover Genius achieved 107% year-on-year growth, maintained a 145% Net Revenue Retention and helped digital businesses provide embedded protection to more than 30 million customers worldwide, according to the release.

Spark Capital led the Series E funding round, with James Kuklinski, general partner at Spark Capital, saying the venture capital (VC) firm was drawn to partner with Cover Genius by the company’s technology platform, global presence and focus on digital claims.

“By tackling common insurance obstacles such as limited market coverage, lengthy claims processes and a lack of product diversity, the company has evolved into a category leader,” Kuklinski said.

In another recent development, Cover Genius said Thursday (May 9) that it formed a new partnership with Adyen, tapping the FinTech as its latest payment processing partner.

In October 2023, the firm teamed up with shipping platform Shippo to introduce Shippo Total Protection, an insurance solution for eCommerce merchants designed to ensure a positive shipping experience for their customers.