AI-Driven MGA Clearcover Raises $43 Million; American Family Among Backers
American Family Insurance joined a new $43 million financing round for Clearcover, a managing general agent with an artificial intelligence-driven platform focused on car insurance.
The Chicago-based insurtech startup said its Series B financing was led by Cox Enterprises. American Family Ventures also participated, along with IA Capital Group, Lightbank and Hyde Park Angels. Silicon Valley Bank provided debt financing.
The company formally launched in early 2018, and began selling in California. It now has distribution partners in the automotive, insurance and financial services industries including Cars.com, The Zebra and Chime.
Clearcover CEO Kyle Nakatsuji said the new financing will help the MGA expand into additional states, pursue new distribution partners and further invest in its data-driven platform, which uses artificial intelligence to make coverage recommendations.
Clearcover pitches its API platform as a way to streamline the insurance buying process and eliminate the need for excessive marketing. The company also claims it can save customers 50 percent on car insurance.
Clearcover announced an initial $11.5 million funding round in 2017 led by Lightbank, with participation from Greycroft Partners, 500 Startups, Silicon Valley Bank and a number of unnamed insurance and fintech investors.
Related