Thanks to the pandemic, many industries were shocked into realizing the necessity of acting with a digital-first business mindset. One sector that was impacted particularly hard was the insurance industry, which is now being transformed with many new fintech offerings. Leading the way on the change in this area is digital car-insurance startup, Clearcover.
Founded in 2016 by Kyle Nakatsuji in Chicago, Clearcover’s API-first approach to insurance promises its clientele great insurance at affordable rates. Within minutes, Clearcover is able to help customers receive reliable car insurance delivered with great customer service dedicated to ensuring a quality experience. Using AI to address the eligibility and estimation problems in insurance, Clearcover is able to more accurately determine plans for customers, saving physical man hours in the approvals process. Clearcover has been able to capitalize on the boost the insurtech vertical received as a result of the pandemic, as global investments in the industry reached a record high, leaping 12% to sit at $7.1 billion as of 2020.
With 2020 signaling much growth for the company, 2021 has brought funding to support this. To this effect, Clearcover recently raised $200 million in capital in a late-stage financing round. The round was backed by Eldridge, the investment firm helmed by Los Angeles Dodgers owner Todd Boehly. While the company’s latest valuation hasn’t been shared, a statement to Reuters confirmed that the company is a newly minted tech “unicorn,” hinting that the valuation will be $1 billion or more. The funding also saw investments from existing investors such as American Family Ventures, Cox Enterprises, and OMERS Ventures.
Nakatsuji also shared that a bigger transformation will be coming for the industry. Factors such as the shift to working from home reducing mileage driven by many Americans will change auto insurance premiums. Clearcover intends to be abreast of this change and expand to around 25 U.S. states by the end of 2021 from its current 15 states. The company shared that it will be using the funds to increase staffing and invest in new products. Social change is also a winning ingredient in the company’s growth. Recently, it was also shared that Clearcover will spearhead a women-led STEM internship program addressing the underrepresentation of women in the insurance industry.
With its API-led technology, and employee first mindset, Clearcover is changing the face of the insurance industry. Offering consumers great service and fast and cost-effective insurance is key to the company’s enduring success moving forward.