Commercial auto InsurTech Cover Whale Insurance Solutions, a US-based provider of connected insurance for the commercial auto sector, has raised $40m in equity financing.
The latest round was led by Morgan Stanley Expansion Capital, which had previously invested in the firm through a structured debt instrument in May 2024.
The shift from lender to equity partner marks a vote of confidence in Cover Whale’s long-term vision and operational progress.
Cover Whale, founded in 2020, has developed a proprietary technology platform that allows insurance agents to bind trucking policies online within minutes. The company leverages real-time telematics and data analytics to underwrite policies on a continuous basis, a model that has allowed it to achieve industry-leading loss ratios in a traditionally high-risk segment.
The newly secured funding will be used to accelerate investment into Cover Whale’s technology stack, bolster its analytics capabilities, and broaden its insurance product offerings. These developments are aimed at fuelling growth and improving overall profitability in the months ahead.
So far in 2025, the company has written $133m in gross premiums, and is on track to reach its full-year goal of $277m. This marks a strong performance in a challenging insurance market, particularly within the commercial trucking segment.
Cover Whale CEO Dan Abrahamsen said, “After years of rapid growth, 2024 marked a pivotal year for Cover Whale as we focused on re-building our foundation. We invested in our technology platform, built a high-performing service organization, and refined our pricing, underwriting and loss control programs. Morgan Stanley Expansion Capital’s transition from lender to equity partner is a gratifying affirmation of the tremendous progress made over the past few years, and their renewed backing gives us the resources to fully capitalize on the significant growth opportunities ahead.”
Nick Nocito, executive director of Morgan Stanley Expansion Capital, added, “Today’s growth equity investment reflects our conviction in Cover Whale’s business strategy, execution and leadership team. Over the last 18 months, the team has built a high-quality, scalable platform that we believe will generate significant growth in the coming years.”
Morgan Stanley’s involvement dates back to May 2024, when it first backed the company with structured debt, highlighting a deepening relationship with the InsurTech as it scales.
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