US-based insurance price comparison service CoverHound secured $58m yesterday in a series D round led by business insurance firm Hiscox.
Insurance providers Chubb, MS&AD Insurance Group and Aflac also contributed to the round, the latter participating through its corporate venturing subsidiary, Aflac Ventures.
Founded in 2010, CoverHound runs an online platform that enables consumers to compare insurance products and receive personalised advice. It has sold more than 200,000 policies to date and has launched a small business insurance comparison tool called CyberPolicy.
The funding will go towards the continued development of CyberPolicy and will allow CoverHound to expand its offices in the US as well as drive international expansion efforts in markets including Japan, where MS&AD is based.
The company will also use some of the cash to support its existing brand partnerships and seek additional tie-ins with banks, insurance companies and technology providers.
CoverHound has raised more than $112m in funding to date, having secured $33.3m in a series C round led by insurer Ace Group in 2015, with participation from American Family Ventures, the corporate venturing vehicle for insurance provider American Family Insurance.
RRE Ventures, Blumberg Capital, Core Innovation Capital and Route 66 Ventures also contributed to the series C round, while media company Source Interlink had imvested an undisclosed sum in 2012.
CoverHound’s shareholders also include Tugboat Ventures, Bullpen and angel investor Thomas Lehrman.
Kevin Kerridge, executive vice-president for small business insurance at Hiscox USA, said: “We are delighted to have this opportunity to work more closely with one of the few truly digital agencies that shares our passion for making material strides in the changing the [small and medium-sized enterprise] landscape.
“CoverHound, as reflected more recently through its CyberPolicy brand, is leading the charge in providing a best-in-class digital cyber solution for businesses, and we are excited to be part of that both as a carrier and the lead investor in this funding round.”
