Cover Genius, the global insurtech leader whose insurance distribution platform provides protection for the customers of some of the world’s largest online companies, has raised A$15 million as it expands its product suite and partner network globally.
The funding announcement comes as the company also announces the launch of its product and parcel insurance products on Shopee Thailand. Within the last month alone, Cover Genius has successfully integrated commercial, shipping and product insurance for six global ecommerce platforms, including Tile and Wayfair among others.
The latest funding round, led by King River Capital, supplemented by a loan from Leap Capital, is aimed at supporting integrations with some of the biggest names in technology and ecommerce across South East Asia, India, the United States and Europe. Online companies are increasingly looking to Cover Genius to help them accelerate their growth with tailored and optimised protection products offered at the point of sale and sign up.
The addressable market for insurance products embedded into points of sale or signup is significant and has accelerated with the outbreak of COVID 19. The global e-commerce market is expected to grow from $1,808.5 billion in 2019 to about $2,405.3 billion in 2020 with the global e-commerce market expected to reach $3,056.3 billion at a CAGR of 14% through 2023.
Speaking on the announcement, CEO and Co-Founder, Angus McDonald said the latest funding round, backed by the company’s existing shareholder group, showed continued investor support for the insurtech’s international expansion plans.
Mr McDonald commented, “Our global partner network is rapidly growing and this recent raise will support the ongoing development of high volumes of strategic partnership deals, across a broad range of insurance lines, verticals and geographies.”
Commenting on how customer adoption of insurance has increased dramatically in recent times with the surge to online shopping, McDonald said:
“Customers want to protect their purchases, big or small, and given the option many will take insurance cover at the point of sale from their favourite online brands. The confidence this gives customers is driving an increase in purchase volume with 32% of customers happy to buy and spend more if offered insurance. Our partners are certainly ahead of the curve and can see the value of insurance not only to their customers, but also their business.”
Chris Barter, Partner at King River Capital said that Cover Genius was meeting the needs of many global ecommerce businesses looking for a truly global insurance solution:
“It’s no surprise that many businesses are looking at partnerships and integrations that can help grow their business in these challenging times. Cover Genius has a long history of actively contributing to the growth and prosperity of some of the world’s biggest ecommerce brands and we are excited to see them expand so quickly into new territories and verticals.”
These recent partnerships see the global insurtech further extend its geographic reach and insurance capabilities, backed by licences all around the world and an award-winning platform that is utilised by an expanding network of global leaders including Booking Holdings (NASDAQ:BKNG), National Express, Despegar, AXS, ShipStation, eBay and Automatrix.