NEW YORK – Cover Whale Insurance Solutions, Inc., a leading insurtech specializing in connected insurance for commercial auto, announced $40 million in new equity financing from Morgan Stanley Expansion Capital. The financing will enable Cover Whale to accelerate investments in its technology platform, analytics, and expand its product offerings to drive increased growth and profitability.
Rapid Growth Through Technology-Driven Underwriting
Founded in 2020, Cover Whale's proprietary technology platform and algorithmic underwriting enables agents to bind trucking insurance policies online in minutes. By leveraging real-time telematics and other data sources, Cover Whale continuously underwrites policies throughout their term, achieving industry-leading loss ratios in the traditionally challenging commercial trucking market segment.
A Pivotal Year of Foundation Building
Commenting on the financing, Dan Abrahamsen, Founder and CEO of Cover Whale, 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."
Strong Performance Metrics
Year to date, Cover Whale has written $133 million in gross written premiums during the first half of 2025, on track for a full-year target of $277 million.
Morgan Stanley Expansion Capital first invested in Cover Whale in May 2024 with a structured debt instrument.
"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." — Nick Nocito, Executive Director, Morgan Stanley Expansion Capital
What This Means for Cover Whale's Future
This $40 million investment will fuel strategic initiatives across multiple areas:
Technology Platform Expansion
- Enhanced algorithmic underwriting capabilities
- Advanced analytics and AI-driven risk modeling
- Improved agent portal and policyholder experience
- Scalable infrastructure for nationwide growth
Product Development
- Expanded coverage options beyond commercial trucking
- New product lines for adjacent markets
- Enhanced telematics integration
- Innovative loss control programs
Market Expansion
- Deeper penetration in existing states
- Entry into new geographic markets
- Strategic partnerships with carriers and distributors
- Enhanced agent support and training programs
The Cover Whale Platform Advantage
Cover Whale's unique approach combines:
- Minutes-to-bind speed vs. weeks in traditional markets
- Continuous underwriting using real-time telematics data
- Industry-leading loss ratios through data-driven risk selection
- Proprietary driver safety program with coaching and rewards
- Seamless agent experience via modern API-first platform
Since inception in 2020, Cover Whale has partnered with nearly 5,000 agents across 46 states to write more than $1.3 billion in gross premium.
From Debt to Equity: A Strategic Partnership Evolution
Morgan Stanley Expansion Capital's transition from debt holder to equity partner demonstrates strong confidence in Cover Whale's business model and growth trajectory. This evolution reflects:
- Proven execution on strategic initiatives over 18 months
- Demonstrated operational excellence in underwriting and loss control
- Scalable platform ready for accelerated growth
- Experienced leadership team with track record of success
Industry Recognition
As Cover Whale has grown, the organization has earned recognition across the industry, including:
- Sonr's 2025 Beyond Boundaries Scale 50 report
- Forbes' Best Startup Employers
- PropertyCasualty360's Top Insurtech to Watch
- Insurance Thought Leadership recognition for innovation
About Cover Whale
Cover Whale is a leading insurtech on a mission to make commercial auto insurance faster, easier, and smarter—for agents, policyholders, and the broader insurance ecosystem.
Grounded in technology, automation, and the strategic use of AI and real-time data, Cover Whale offers the industry's fastest quote and bind platform, while delivering industry-leading loss ratios. The company's proprietary driver safety program combines continuous underwriting, real-time risk monitoring, telematics, and driver coaching to reduce losses, reward safe driving, and improve road safety for both covered drivers and the motoring public.
Operating as a managing general agent (MGA), Cover Whale has partnered with nearly 5,000 agents across 46 states to write more than $1.3 billion in gross premium since its inception in 2020. As it has grown, the organization has earned recognition across the industry, including being named a top insurtech to watch by PropertyCasualty360 and one of Forbes' Best Startup Employers.
To learn more, visit coverwhale.com and stay current via LinkedIn, Facebook, and their blog.
About Morgan Stanley Expansion Capital
Morgan Stanley Expansion Capital is the growth-focused private investment platform within Morgan Stanley Investment Management. MSEC targets late-stage growth equity and credit investments within technology, consumer, healthcare, and other high-growth sectors. For nearly four 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.
About Morgan Stanley Investment Management
Morgan Stanley Investment Management, together with its investment advisory affiliates, has over 1,400 investment professionals around the world and $1.7 trillion in assets under management or supervision as of June 30, 2025. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, client service, and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations, and individuals worldwide.
For further information about Morgan Stanley Investment Management, please visit www.morganstanley.com/im.
About Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions, and individuals.
For more information about Morgan Stanley, please visit www.morganstanley.com.
Media Inquiries
For questions about this financing announcement, please contact:
Cover Whale Communications Email: [email protected]
Morgan Stanley Media Relations Visit: www.morganstanley.com/press