Recognized for its online commercial trucking insurance platform and Driver Safety Program, Cover Whale will use funding to support the next phase of profitable growth
NEW YORK, May 22, 2024 — Cover Whale Insurance Solutions, Inc., a leading insurtech specializing in connected insurance for commercial auto, today announced funding of $27.5 million in debt and equity from investment funds managed by Morgan Stanley Expansion Capital. The funding round, which also had existing debt investors convert into the Series A preferred, will support Cover Whale's continued growth and accelerate its progress toward transforming trucking insurance and improving safety on America's roads.
Supporting a Strong, Profitable Business
The funding will provide for a strong balance sheet supporting Cover Whale's profitable, growing business. Known for its ability to provide agents and their trucking clients with lightning-fast policy quotes and bound coverage, Cover Whale is actively investing in its technology and operating platform to further improve speed to quote and improve service quality.
"Cover Whale was built from the ground up to transform commercial auto insurance with technology at our core. We believe this investment from Morgan Stanley Expansion Capital will support our continuing mission to deliver the industry's leading trucking insurance experience, building on the positive impact we've already made for our agents, drivers, and the general motoring public." — Dan Abrahamsen, CEO, Cover Whale
Technology-Driven Commercial Trucking Insurance
Founded in 2019, Cover Whale's unique business model combines easy, instant quotes and binds with advanced telematics and real-time driver coaching. It continues to redefine commercial trucking insurance via technology-driven strategies, optimizing road safety and financial performance with tangible results.
What Makes Cover Whale Different
Lightning-Fast Quotes & Binding
- Industry's fastest online quote and bind experience
- Minutes to coverage vs. weeks with traditional carriers
- Agent-friendly platform designed for efficiency
Advanced Telematics Integration
- Real-time driving behavior monitoring
- Continuous underwriting throughout policy term
- Data-driven risk assessment and pricing
Driver Safety Program
- Real-time driver coaching and alerts
- Proactive risk intervention
- Improving safety on America's roads
Profitable Operations
- Industry-leading loss ratios
- Disciplined underwriting and risk selection
- Capital-efficient growth model
Investor Perspective: Rare Combination of Scale and Profitability
"We believe Cover Whale is a rare instance where the team has built a large-scale insurtech MGA and achieved consistent profitability while remaining capital efficient. We are looking forward to partnering with the team as they continue to grow the platform and pursue new avenues of growth." — Nick Nocito, Executive Director, Morgan Stanley Expansion Capital
This investment from Morgan Stanley Expansion Capital represents significant validation of Cover Whale's business model and execution. Unlike many insurtechs that prioritize growth at the expense of profitability, Cover Whale has demonstrated the ability to scale efficiently while maintaining strong unit economics.
Strategic Investment Areas
The $27.5 million funding will support key strategic initiatives:
Technology Platform Enhancement
- Further reduce speed to quote
- Enhance agent portal functionality
- Improve automation and straight-through processing
- Scale infrastructure for continued growth
Service Quality Improvements
- Expand customer support capabilities
- Enhance claims processing efficiency
- Build out underwriting team
- Improve policyholder experience
Market Expansion
- Geographic expansion to new states
- Product line diversification
- Agent network growth
- Strategic partnerships
Driver Safety Innovation
- Advanced telematics capabilities
- Enhanced coaching programs
- Predictive risk modeling
- Loss prevention initiatives
Impressive Growth Metrics
As of this funding announcement, Cover Whale's track record includes:
- 15,000+ in-force policyholders actively covered
- $225M gross written premium in 2023
- Industry-leading loss ratios maintained consistently
- 4,000+ active agents across the network
- Capital-efficient operations with proven profitability
Recognition and Awards
Cover Whale's innovation and growth have earned industry recognition:
- 2023 Insurtech of the Year by Program Manager
- One of America's Best Startup Employers on Forbes' 2023 list
- #3 Insurtech to Watch in 2024 by PropertyCasualty360
The Road Ahead
With Morgan Stanley Expansion Capital's backing, Cover Whale is positioned to:
- Accelerate technology development to maintain competitive advantage
- Scale operations efficiently while preserving profitability
- Expand market reach to serve more agents and trucking companies
- Enhance safety programs to reduce claims and save lives
- Pursue strategic growth opportunities in adjacent markets
What This Means for Stakeholders
For Insurance Agents
- Continued platform improvements for faster, easier quoting
- Enhanced support and training resources
- Growing product portfolio to serve more client needs
- Reliable, well-capitalized partner for the long term
For Trucking Companies
- Better service quality and faster turnaround times
- Advanced safety programs to reduce risk and premiums
- Fair pricing based on actual driving behavior
- Innovation that keeps getting better
For Capacity Partners
- Strong balance sheet supporting growth
- Proven profitability and loss ratio performance
- Technology platform that delivers superior risk selection
- Experienced management team with track record of execution
About Cover Whale
Cover Whale, an insurtech founded by experienced insurance and technology veterans, focuses on technology, underwriting, and data to provide innovative insurance programs for the commercial auto industry.
Operating as a managing general agent (MGA), the company currently has more than 15,000 in-force policyholders, ending 2023 with $225M in GPW while maintaining industry-leading loss ratios. Cover Whale's unique Driver Safety Program combines insurance coverage with telematics and real-time driver coaching to reduce claims, keep drivers safe and save lives on America's roads.
Cover Whale delivers its product through more than 4,000 active agents with the industry's fastest, most agent-friendly online quote and bind experience. With a fundamental belief that safe driving should be rewarded, Cover Whale's safest drivers save by receiving the best insurance rates in the industry.
The company was named 2023 Insurtech of the Year by Program Manager, one of America's Best Startup Employers on Forbes' 2023 list, and more recently, the #3 insurtech to watch in 2024 by PropertyCasualty360.
For more information, visit www.coverwhale.com. Stay updated with Cover Whale on LinkedIn, Facebook, Instagram, and our blog.
About Morgan Stanley Expansion Capital
Morgan Stanley Expansion Capital is the growth-focused private investment platform within Morgan Stanley Investment Management. Morgan Stanley Expansion Capital targets growth equity and credit investments within technology, consumer, healthcare, and other high-growth sectors. For over three decades, Morgan Stanley Expansion Capital has successfully pursued growth investment opportunities and has completed investments in over 220 companies, leveraging the global brand and network of Morgan Stanley.
Media Contact
For more information about this investment, please contact:
Cover Whale Communications Email: [email protected]
Morgan Stanley Media Relations Visit: www.morganstanley.com/press