Canadian InsurTech startup raises $1.5 million

Covera’s co-founders Paul O’Reilly and Scott Loong

Montreal-based startup Covera Technologies Inc. has raised a total of $1.5 million in capital.

The recently completed seed financing round raised $1 million and was led by Montreal-based Ferst Capital Partners with participation from FinTech angel investors, according to an announcement released on Tuesday. The startup was able to raise $500,000 in a pre-seed financing round in 2016.

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The company is tackling the renewal process and encouraging Canadians to sign up with Covera and avoid letting their personal insurance policies automatically renew. Once customers are registered, Covera will undergo the comparison price shopping for customers whose insurance expires through the use of data and proprietary algorithms.

“Covera provides everyday Canadians with a non-conflicted and technology-first approach to improving their mobility in the market – gone are the days where Canadians are trapped by the boring process of shopping. Covera handles it for you, year-after-year, and gets you the best value in the market when your home or auto insurance expires.” said Scott Loong, CEO of Covera, in a statement.

Related: Technology at the Forefront of Insurance-Canada.ca Executive Forum

Covera will use the new financing to support growth and user acquisition initiatives, drive geographic expansion Canada-wide and build the team in order to accelerate product development.

“There is an enormous opportunity for disruption in P&C insurance distribution and Covera is innovating by effectively leveraging data and AI to gain insights. Covera is using a unique go-to-market strategy by targeting the insurance renewals space,” said Dominique Ferst, managing partner at Ferst Capital Partners, in a statement.

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This story was originally published by Canadian Insurance Top Broker.