Global specialist insurer Hiscox has led a $58 million Series D funding round for CoverHound, a property and casualty (P&C) insurance platform for digital distribution.
Additional investors included insurance providers Chubb, Aflac Ventures and MS&AD, who CoverHound entered a strategic alliance with earlier this month.
CoverHound worked with Allen & Company LLC on the Series D, and the latest round brings the total capital raised since the insurtech’s launch in early 2010 to over $112 million.
The firm has sold more than 200,000 policies since commencing its operations, helping small businesses compare, quote and buy cyber insurance online via its CyberPolicy subsidiary, which it offers in partnership with Hiscox.
This latest funding round will support the continued development of CyberPolicy, as well as allowing CoverHound to expand its San Francisco and Westlake Village offices in California to Charlotte, North Carolina and eventually into global markets such as Japan.
The investment will also help CoverHound continue to form new partnerships with high-profile banks, re/insurers and technology providers.
“We are delighted to have this opportunity to work more closely with one of the few truly digital agencies that shares our passion for making material strides in the changing SMB landscape,” said Kevin Kerridge, Executive Vice President of Small Business Insurance at Hiscox USA.
“CoverHound, as reflected more recently through its CyberPolicy brand, is leading the charge in providing a best-in-class digital cyber solution for businesses, and we are excited to be part of that both as a carrier and the lead investor in this funding round,” he continued.
Keith Moore, Chief Executive Officer (CEO) of CoverHound, also commented: “The future of digital insurance distribution will continually shift to more non-traditional insurance brands. CoverHound has built the leading P&C platform to enable any brand’s customers to easily quote, compare and buy personal, business and cyber insurance.”
“In an industry that’s been heating up with a flurry of new entrants, we feel blessed that we know exactly who we are and what we excel at,” he added.
“We have no desire to be an insurance carrier or an online search engine purely for price comparisons. CoverHound and CyberPolicy are digital, trusted advisors for curated choice for anyone needing personal or business insurance.”
Moore further stated: “We’re honored to have such legendary industry leaders from around the world supporting us in our latest funding round. As both a technology and insurance company, we’re in a unique position to empower trusted brands for the digital distribution of personal and business insurance.”