Kover.ai, a San Francisco-based insurance startup, has closed its seed round on $1.5m.
The round was led by West Loop Venture, with participation also coming from Afore Capital and Techstars Venture.
Through the platform, a business can use Kover.ai’s infrastructure by integrating an API to build and distribute coverage products to customers, without needing to involve an insurance company. An example offered by the startup is a rideshare company could create and distribute a self-insured protection to its drivers.
Premiums collected for each product are put into a pool managed by a smart contract. As the company nor the smart contract are aimed at profit, Kover.ai claims it better serves the community needs.
Kover.ai co-founder Zack Peng said, “Insurance is an important societal infrastructure. It takes care of our downside so we can focus on pursuing the upsides of life, like a meaningful career, a happy family, and so on.
“However, insurance is tremendously inefficient today. The cost of inefficiency is hurting the consumers in the form of overpriced premiums, slow payouts, and lack of accessibility. We have a unique opportunity to fix this fundamental yet obsolete social infrastructure. When Kover.ai succeeds, insurance will be as accessible as running water.”
The InsurTech was one of the nine companies to graduate from the 2019 MetLife Digital Accelerator Powered by Techstars.
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