Vertical insure, the embedded insurance platform for vertical SaaS platforms, has raised $4m in seed funding.
The round was co-led by Rally Ventures and Dundee VC.
Vertical Insure provides vertical SaaS platforms with embedded, white label insurance products that can be deployed to their current customer base.
The company offers customised insurance options that are 100% built around each business and its customers, resulting in added value and new revenue without any extra overhead
According to Vertical Insure, the US insurance market was valued at over $1.3trn in 2021. This means there is an “enormous demand” for the safety net that good insurance provides. However, the company said outdated technology and legacy practices have resulted in complex processes and expensive, cookie-cutter coverage. Companies and individuals end up with basic offerings that leave many needs unmet.
Vertical SaaS platforms offer a solution to this. Vetical Insure said that customers can run their entire businesses on these platforms and typically will first look to them for expanded products and services.
With Vetical Insure’s offering, SaaS companies can offer customised insurance options at the “click of a button”, resulting in added value and new revenue without any extra overhead or IT bandwidth.
Greg Beaufait, partner at Dundee Venture Capital, said “Embedded insurance is a huge opportunity. In numerous industries the addition of embedded insurance has been shown to double the revenue of a vertical SaaS company. These platforms know the needs of their customers, and Vertical Insure leverages their existing data to recommend, underwrite and price customized coverage to ultimately create a more valuable product.”
Brock Noland, co-founder and CEO of Vertical Insure and founder and former CEO of Cloudera, Streamsets and phData, added, “Vertical SaaS platforms are ideally positioned to offer right-sized coverage. Leveraging their relationships, they can collapse applications down to a single checkbox at checkout and earn revenue for enabling ease of purchase. Platform businesses should get the full benefit of dramatically simplifying insurance for their customers.”
Earlier this year, Insurtech Gateway, a champion of early-stage InsurTech startups, completed the first close of its Seed Fund II which will support 20 teams over the next four years from pre-seed to Series A.
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