Taking Car Insurance Business More Digital
Clearcover is a digital car insurance company that strives to accelerate the innovation of its insurance business solutions. The company plans to use the funds to invest in its business products and engineering teams, as well as double its staff by 2022.
Overall, the startup company has secured $329 million in total funding. The Series D placed a business valuation of the company at $1 billion.
“The car insurance experience is becoming increasingly digital and customers want streamlined, customizable options when choosing a carrier,” said Kyle Nakatsuji, the co-founder and CEO of the car insurance startup.
“In an industry ripe for transformation, we see ourselves as innovators in digital car insurance experiences while providing our customers more value for less money. This new capital will allow us to continue our growth across the country, providing better insurance to more customers.”
The startup business uses modern technology to automate insurance tasks, significantly cutting costs. The cut in costs allows the car insurance startup to slash prices of its services as well.
Over 65% of customers who adopted digital claims during the coronavirus pandemic plan to continue those practices in the future, according to data by a McKinsey & Co. survey. Clearcover is known for its innovative Clear Claims, a business solution for the digital claims process that allows payment on eligible claims in less than 30 minutes.
"Clearcover’s technology-first platform offers customers a fast, affordable alternative to legacy auto insurance,” said Todd Boehly, Chairman and CEO of Eldridge.
“As the industry continues to evolve from analogue to digital, Clearcover is well-positioned to scale while delivering a competitive product and better experience to consumers across the US.”
Clearcover is a fast-growing startup business in a long-disrupted industry. Nakatsuji had previously worked at American Family Insurance (AmFam) in Wisconsin before starting his own startup company.
The company’s claim processes can not be matched in the auto insurance industry, with 96% of claims being handled completely digitally.
“Consumers get settlements faster and it’s less expensive for us,” adds Nakatsuji.
This has proved especially useful during the coronavirus pandemic as it reduced physical interaction between parties.
Clearcover is looking to build its second employment center in Michigan to create more virtual jobs. The startup company plans to hire around 300 more employees from Detroit, making Michigan a “second hub” for the business.
The car insurance startup company is headquartered in Chicago. Clearcover chose its location based on the fact that a majority of the traditional insurance industry essentially started there and still resides in the region.
Car insurance startup Clearcover said it secured $200 million in the Series D funding round at a $1 billion business valuation. The Chicago-based company, which has raised $329 million in total business funding to date, plans to use the raised funds to invest in its products, engineering teams, as well as double its staff by 2022.