Online car insurance provider Clearcover has exited stealth and also announced an $11.5m round of funding, led by Lightbank.
The round also saw investments from firms including Greycroft Partners, 500 Startups and Silicon Valley Bank, among others.
Chicago-based Clearcover is an API-based insurance platform which helps save customers up to 50 per cent on products. The technology uses artificial intelligence to give users custom recommendations with the protection they need, but removes excessive marketing strategies used by big insurance companies, so it can help save costs for users.
This funding will be used to scale up partnerships and help with the launch of its car insurance product line.
Lightbank Property Managing Partner Victor Pascucci III said, “Property and casualty companies spend more than $50bn per year on marketing, agency infrastructure, and outdated processes. Clearcover’s new platform and distribution model eliminate those costs so people get more for their money. After 20 years of working with insurance companies and investing in tech startups, Clearcover is one of the most exciting opportunities I’ve seen.”
Late last year LightBank took part in the £10.7m funding round of accounting software provider FreeAgent, with the funding used to offer more options for growth.
The firm is also an investor of auto insurance virtual claims service provider Snapsheet, with the company netting a $12m Series D funding round earlier this year to help invest into machine learning technology. Late last year the company raised its Series C, with it raking in $20m as it looked to fund the licensing of its claims processing technology and self-serving applications to insurers.
Global investments into InsurTech companies have dropped for the last five quarters, with Q1 2017 seeing $178.5m deployed.
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