InsurTech

Life insurance startup Covr raises $12M to accelerate its domestic and global ambitions

An investment fund tied to international conglomerate Sony has contributed to a $12 million funding round for insurtech startup Covr Financial Technologies.

Hartford, Connecticut-based Covr, which offers life insurance through its digital platform, announced the funding round April 29. This round brings Cover’s total funding to $30 million.

An undisclosed sum in the new funding round came from Sony Innovation Fund by IGV. Innovation Growth Ventures, or IGV, is a venture capital firm formed in 2019 by Sony and Daiwa, two powerhouse brands from Japan, in conjunction with outside partners.

The names of the other investors in the $12 million round weren’t available. However, Covr does list a total of nine existing investors: Sony Innovation Fund by IGV, Nyca Partners, Commerce Ventures, Allianz Life Ventures, Connectivity Capital Partners, Contour Venture Partners, Aflac Ventures, Fairview Capital and Connecticut Innovations.

Members of Covr’s advisory board include:

  • Brian Finn, former president of Credit Suisse First Boston.
  • Joe Plumeri, vice chairman of First Data Corp. and former CEO of Citibank North America.
  • Sallie Krawcheck, co-founder and CEO of female-focused fintech Ellevest.
  • Hans Morris, chairman of Lending Club and former president of Visa.
  • Brady Dougan, former CEO of Credit Suisse.
  • Greg Fleming, president and CEO of Rockefeller Capital Management.
  • Bob Kerzner, former president and CEO of life insurance trade group LIMRA.

The $12 million infusion will help Covr grow from its current workforce of 90 people to 110 employees by year’s end, company executives said. Covr was founded in 2016.

“Wrapping our latest round of funding with a highly recognizable, global brand like Sony, which is also an insurance distribution leader in Asia, is just incredible,” Mike Kalen, CEO of Covr, said in a news release. “This investment and Sony’s global network will go far in helping Covr continue to lead the way in digital insurance innovations in the U.S., and eventually abroad … .” 

The funding will enable Covr to sign up more providers of financial services, such as banks, credit unions and fintech apps, that want to offer life insurance to their customers. Several life insurers underwrite the policies, including Americo, Banner Life, Bestow and Haven Life. Covr’s technology integrates into the website or other distribution platform of a financial services provider.

Covr says it serves over 25,000 financial advisers and over 20 million customers across more than 30 financial institutions. 

“Customers today expect simplicity and choice when it comes to protection products – and expect that it’s done quickly,” Kalen said. “Our platform allows our financial brands and other partners to meet this demand with a digital white-labeled solution.”

The $12 million also will propel Covr’s LoanMatch Protector, a life insurance offering that protects consumer and business loans, such as mortgages and small business loans. Cover rolled out LoanMatch Protector in January.

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