Insurance disruptor Cuvva that began as an app offering pay-as-you-drive motor insurance has raised £15 million ($19 million) of venture capital backing to target the long-term motor insurance business.
RTP Global, Breega and Digital Horizon have joined seed investors LocalGlobe, Techstars Ventures, Tekton and Seedcamp to invest in the app-based insurance platform, which recently announced the appointment of the Lloyd’s of London chairman as its chair.
Angel investors from the insurance sector, including Dominic Burke, the CEO of Jardine Lloyd Thompson and Faisal Galaria, the former chief strategy and investments officer of GoCompare, have also put in capital.
Cuvva’s Series A funding comes as the company prepares to launch a pay-monthly insurance product for the first time, a key step in its ambition to provide one gateway app to serve all consumer insurance needs.
Cuvva Founder Freddy Macnamara said: “The way insurance is sold hasn’t kept up with the way people live their lives now.
“I started Cuvva when I couldn’t find flexible insurance to help me share my car. Four years on from launch we are still discovering how big the problem we are solving really is. We’re now selling 3% of all UK motor insurance policies but we’ve got so much further to go. Cuvva is going to be the place where you buy all your insurance, all through our mobile app.”
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The pay-monthly motor product will launch early in 2020 and could cut average annual bills for car owners significantly. Cuvva plans to cut out all middlemen including brokers and comparison websites, which charge insurers about £70 on each policy sold.
Anton Inshutin, managing partner at RTP Global, added: “The insurance industry across Europe is ready for a fresh approach. The UK has a long history of initiating change in the way that insurance is sold and Cuvva has devised a product that has incredible appeal for a new generation of car owners and borrowers.
“We are thrilled to be able to begin this journey to build a whole new way of buying insurance with Freddy and the team.”
“Cuvva has an exciting vision for what a customer-centric insurer will look like and is unafraid to take on the middlemen in this sector and dismantle a raft of ‘traditional’ fees and penalties. Their fundraising also comes at a time when there is real appetite for innovation in insurance,” Ben Marrel, partner at Breega, said.
The London-based company will use the proceeds of its fundraising to build the team, adding engineers, developers, marketeers and customer operations staff to its 80-strong team. Over the next 18 months, it expects to double in size and already has a 30 strong in-house customer operations team.