Cover Whale, a US-based InsurTech specialising in connected insurance for the commercial auto sector, has secured $40m in equity funding from Morgan Stanley Expansion Capital.
Founded in 2020, Cover Whale uses a proprietary technology platform and algorithmic underwriting to let insurance agents bind trucking policies online in minutes.
The platform leverages real-time telematics and continuous underwriting to help reduce losses in the high-risk commercial trucking market.
The new investment will support Cover Whale’s efforts to expand its product offerings, enhance its analytics, and accelerate upgrades to its technology stack. This follows a year in which the company focused on strengthening its foundations, including improvements to service delivery, pricing models, and underwriting.
Cover Whale CEO Dan Abrahamsen said, “After years of rapid growth, 2024 marked a pivotal year for Cover Whale as we focused on re-building our foundation. We invested in our technology platform, built a high-performing service organization, and refined our pricing, underwriting and loss control programs. Morgan Stanley Expansion Capital’s transition from lender to equity partner is a gratifying affirmation of the tremendous progress made over the past few years, and their renewed backing gives us the resources to fully capitalize on the significant growth opportunities ahead.”
Morgan Stanley Expansion Capital initially backed Cover Whale with a structured debt instrument in May 2024. Commenting on the latest investment, executive director Nick Nocito said, “Today’s growth equity investment reflects our conviction in Cover Whale’s business strategy, execution and leadership team. Over the last 18 months, the team has built a high-quality, scalable platform that we believe will generate significant growth in the coming years.”
