Corvus Insurance has secured $10 million in new venture financing that the Boston-based insurtech managing general agency plans to use to jump into additional lines of commercial insurance.
Two firms led the startup’s Series A financing: .406 Ventures and Hudson Structured. Previous investor Bain Capital Ventures also committed to additional funding. To date, Corvus has raised $14 million in overall financing.
Corvus bills itself as a broker-friendly MGA focused on offering “smart,” or technology-enabled commercial insurance. The company said it uses big data, the Internet of Things and other technology to help commercial insurance brokers and their clients predict and prevent loss. The company’s CrowBar product uses customer-specific data to develop scoring that informs underwriting decisions and pricing. The data is then converted into free data analytics and business intelligence for commercial insurance brokers and their policyholders, Corvus said. The platform also allows 24/7 access to policy and claims information.
Corvus has initially focused on cargo insurance, using data from temperature sensors to help predict and prevent spoilage claims. Argo Insurance is the primary cargo carrier.
It also offers a cyber Insurance product that uses network security assessments and web scanning technology to give clients “better pricing, enhanced coverage and tools for proactive risk management.”
Corvus said it is developing more commercial insurance products that will use data from a number of sources including private sources, government sources, mobile phones, cybersecurity scans, social media, Internet of Things sensors and satellite imagery.
Founder and CEO Phil Edmundson previously ran a top commercial insurance brokerage, William Gallagher Associates, which was subsequently sold to Arthur J. Gallagher.
“Commercial insurance is a huge market that is ripe for innovation and there’s a lot of investment interest. That stirs the pot and brings together insurance professionals with tech expertise and funds new ventures like Corvus,” Edmundson told Insurance Journal earlier this year for a report on agent-inspired insurtechs.
Edmundson said he expects the industry will see more insurtech startups focused on empowering brokers rather than those that want to displace them. “We are not trying to disintermediate anyone,” he said. “We are trying to empower brokers because the present system moves a little too slowly in bringing tech-enabled insurance products to market.”
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