Chicago-based auto insurance startup, Clearcover that utilizes Artificial Intelligence announced that it has hoisted a USD 43 million funding. The funding round led by Cox Enterprises, American Family Ventures, IA Capital Group, Lightbank, and Hyde Park Angels.
Founded by former American Family Insurance employees Kyle Nakatsuji and Derek Brigham who saw a way to utilize technology for providing better customer service and lower the costs while they established the company in 2016. Clearcover has built an API that seeks to incorporate with websites that have the data it requires to identify which customers are trying to purchase car insurance right now that involves personal finance apps, automotive websites, and insurance shopping sites. A visitor to one of the sites or apps that has Clearcover’s API integrated might see an ad to check out a quote from Clearcover. It has also formed an Artificial Intelligence-enabled coverage recommendation tool named SmartCover which supports the company automatically makes common coverage recommendations to potential new customers.
Clearcover currently is only selling insurance in California, though the company expects to grow to at least 6 or 8 more states next year. Additionally, Nakatsuji said that the company has thousands of customers in the state and wrote around USD10 million in direct premiums in 2018. However, he refused to answer how much Clearcover’s first customers are paying but indicated that the company charges anywhere from 15 to 40 percent less than the larger agency carriers.