COVU, an AI-enabled digital platform for insurance agencies, has raised $10m in seed funding to launch its product.
The round was led by ManchesterStory Group, with support from angel and VC investors across the insurance and technology industry.
COVU was founded by insurance industry veterans Ali Safavi and Tasos Chatzimichailidis with the goal of helping independent insurance agents and carriers better manage risk and make smarter insurance decisions through AI-driven policy recommendations, business services and sales support.
The COVU platform takes ownership of front and back-office tasks, which the company said gives insurance agents time to focus on strengthening customer relationships, grow their business and embrace digital operations.
A combination of technology and services help agents generate higher customer satisfaction rates, boost retention and cross selling and achieve higher profit margins, COVU added.
The majority of independent insurance agencies spend around 40% of total revenue and agents spend 70% of time on back-office and administrative tasks, according to COVU.
Yet, these efforts have not translated into faster or easier journeys for customer insurance transactions. To retain customers and reduce wasted effort, COVU is advocate of improving the journey.
Safavi, chief executive officer, COVU, said, “By listening to the market, we discovered that most agencies do not want to be acquired in order to grow their business, but they need professional help modernizing and expanding. What they want is an all-in-one platform and a partner to help them solve inherent challenges such as poor productivity, digitalisation of the customer experience and an inability to scale.”
Matt Kinley, founding partner, ManchesterStory Group, added, “Insurance customer expectations evolve every year, and many independent agencies are worried they don’t have the time and resources to modernise and grow independently. We believe strongly in the COVU business model because the market has indicated that this is how insurance agents want to work and this is the type of support they need.”
Another company looking to help insurance agents is Better Agency, an agency success platform for insurance agents. The company recently raised $8m in a Series A round.
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