Source: Fintech Finance News
UpCover offers the world fastest business insurance quoting experience powered by its proprietary instant quote flow across a range of business industry verticals. Despite a significant shift towards online-first insurance platforms abroad, over 95% of commercial insurance in Australia is still negotiated via offline brokers. This is in stark contrast to home and motor insurance, where well over 60% of the transactions are completed online. The business also offers white labelled (or embedded) insurance solutions and insurance APIs,enabling brands to offer B2B insurance utilising upcover’s market leading insurance platform, as well as its unique AI-assisted customer support layer.
Skye Theodorou, co-founder of UpCover said: “We’ve defied the odds with UpCover. Not only has the business thrived during one of the hardest years Australia’s startup industry has seen, but we’re also competing against four of Australia’s largest companies who control 80% of our market. It’s no wonder we’re still the only startup in this sector of insurance.”
“It’s telling that one in three businesses that quote with us, end up taking insurance from us. Over $20 billion worth in business insurance is sold annually in Australia. Only 5% of it is traded digitally. Despite the majority of it being sold by brokers, it’s still by-and-large not relevant to the customer. Time and time again, businesses and business owners are sold insurance that simply doesn’t fit their needs, or even worse, doesn’t properly cover them.
“It’s one of the few instances where automation is absolutely doing a better job than their human counterparts. Once insurance is sold, brokers don’t always check in with businesses as they grow, to ensure their coverage continues to fit their needs. It’s something we’ve built into UpCover.”
Anish Sinha, co-founder of UpCover said: “We’ve always operated with a capital scarcity mindset, that has helped us thrive in what has been one of the startup industry’s toughest years to date.”
“In less than three years, and with a fifth of the funding raised by our US and UK counterparts, we’ve helped 1% of all businesses in Australia to find the right insurance. Overseas players in this sector have spent significantly more to acquire a similar market share.
“With our $19 million Series A funding, we’re now armed with the firepower to dominate the market, quadruple our penetration, launch cutting-edge digital insurance verticals, and embed AI at the core of UpCover’s business insurance broking and underwriting technology.”
“The business insurance industry has seen a string of M&A and PE buyouts in the last couple of years, reducing the choice for Australian businesses. Staying independent, remaining nimble and cost conscious, and injecting new capital will enable UpCover to challenge the status quo of the analog incumbents and disrupt the commercial insurance industry in 2025 and beyond.”
Read the full article: https://ffnews.com/newsarticle/insurtech/upcover-secures-19-million-as-it-ramps-up-challenge-to-australias-analog-incumbents-in-the-commercial-insurance-sector/
