Insurtech Cuvva has raised £15m ($19m) in funding from investors to start the next phase of its plan to “rebuild insurance”.
Investors included RTP Global, Breega, and Digital Horizon. They join seed investors LocalGlobe, Techstars Ventures, Tekton, and also Seedcamp.
Go deeper with GlobalData
Furthermore, the insurtech appointed the chairman of Lloyd’s of London, Bruce Carnegie-Brown, as its chair.
London-based Cuvva will use the funding to build its team, adding engineers, developers, marketeers, and customer operations. It expects its team of 80 to double in size over the next 18 months.
Cuvva funding and plans
The Series A funding comes as the firm prepares to launch a pay-monthly insurance product for the first time.
The motor product will launch in early 2020 and could potentially cut average bills for car owners significantly. Cuvva plans to cut out all middlemen, including brokers and comparison sites, which charge insurers approximately £70 on each policy sold.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataHowever, Cuvva will not charge a fee to spread payments over the year and will not penalise with dual pricing. The same savings will be offered to new and returning customers and there are also no admin fees.
Freddy Macnamara, founder of Cuvva, said: “The way insurance is sold hasn’t kept up with the way people live their lives now. We buy lots of goods and services via flexible subscriptions to suit our on-demand lifestyles. Why shouldn’t you be able to do that for insurance?
“I started Cuvva when I couldn’t find flexible insurance to help me share my car. Four years on from launch we are still discovering how big the problem we are solving really is. We’re now selling 3% of all UK motor insurance policies but we’ve got so much further to go. Cuvva is going to be the place where you buy all your insurance, all through our mobile app.”
Anton Inshutin, managing partner at RTP Global, added: “The way motor insurance is sold is particularly unfair and inflexible but we can make it cheaper by cutting out the middlemen and removing the penalties for paying monthly, which hurt younger drivers or lower-mileage drivers disproportionately.”
“The insurance industry across Europe is ready for a fresh approach. The UK has a long history of initiating change in the way that insurance is sold and Cuvva has devised a product that has incredible appeal for a new generation of car owners and borrowers. We are thrilled to be able to begin this journey to build a whole new way of buying insurance with Freddy and the team.”
Since launch in 2016, Cuvva has sold more than 40 million hours of insurance and has over 250,000 customers.
