InsurTech Cuvva raises £15m in Series A funding
Source: Asia Insurance Review | Jan 2020
Cuvva, an InsurTech provider that offers pay-as-you-go motor vehicle insurance and travel insurance has raised £15m ($20.2m) in its Series A round of funding.
This funding comes from RTP Global, Breega and Digital Horizon, joining existing investors LocalGlobe, Techstars Ventures, Tekton and Seedcamp. A number of angels also joined the round, including Jardine Lloyd Thompson CEO Dominic Burke and GoCompare former chief strategy and investments officer Faisal Galaria.
Launched in 2016 when founder Freddy Macnamara became frustrated he couldn’t let others drive his car intermittently because of lack of insurance cover, Cuvva was an early pioneer of pay-as-you-go car insurance.
The InsurTech still offers hourly car insurance, but its product line has since been expanded to daily cover, as well as a product specifically aimed at learner drivers. In addition, Cuvva entered the travel insurance space, no doubt spotting overlap with its presumably younger, millennial demographic.
To that end, Cuvva says it will use the new capital to launch a new pay-monthly motor product in early 2020 that it says could cut average annual bills for car owners ‘significantly’. It will do this by cutting out various middle people, including brokers and comparison websites, which it says charge insurers about £70 on each policy sold.
“Unlike legacy insurers, Cuvva will not charge a fee to spread payments over the year and it will not penalise loyal customers with dual pricing,” says the start-up. A