Japanese insurance company Sompo Holdings has led a $100 million Series C investment round in insurance software company Cover Genius.
Sydney-based Cover Genius supplies technology which provides embedded insurance for e-commerce platforms. This enables businesses selling goods or services online to include insurance, gaining them an additional income stream. Lines of insurance provided include property insurance for renters, landlords, homeowners and body corporates; fintech and bank insurance programs, insurance for retailers, gig contractors, logistics platforms, cyber security, online travel agencies, rental car aggregators and airlines.
Established in 2014, Cover Genius has established partnerships with some of the world’s largest digital businesses including Booking Holdings, Skyscanner, Ola, Intuit and Shopee. The company is providing its technology in more than 60 countries, including the US.
Sompo’s strategic investment provided about $68 million in this latest funding round which was supported by another new investor, US fintech specialist G Squared. Existing investors JB Fairfax family office Marinya Capital, listed equities funds manager Regal Funds and King River Capital also supported the round.
King River led Cover Genius’ Series A round in 2019, a $10 million Series B round last year and participated in a $15 million bridge funding round with venture debt firm Leap Capital late last year.
Sompo plans to underwrite Cover Genius’ insurance products as it moves into Asian markets.
Sompo said that though existing co-operative projects it had recognised vast potential in Cover Genius’ global capabilities.
Chief executive of Sompo Asia, Daniel Neo said: “We are very excited about the future of embedded insurance. I believe Cover Genius is uniquely positioned to excel in this fast-developing market.”
Cover Genius chief executive and co-founder Angus McDonald said: “This funding will enable us to scale our current offerings and continue our rapid growth as we enter into new markets with innovative solutions for embedded protection.”
Cover Genius was named Growth Company of the Year in the 2018 Growth Company Awards, before it had received any venture capital. Until then, the company had been financed by co-founders McDonald and Chris Bayley and a couple of London-based insurance executives.