Montreal-based Covera, which has a platform that finds annual insurance rates for customers, has raised $1 million in its seed financing round. With the support of Ferst Capital Partners and FinTech investors, Covera has raised a total of $1.5 million to date.
“No one should be allowing their insurance to automatically renew – there are almost always benefits to shopping around,” said Scott Loong, CEO of Covera. “Covera provides everyday Canadians with a non-conflicted and technology-first approach to improving their mobility in the market – gone are the days where Canadians are trapped by the boring process of shopping. Covera handles it for you, year-after-year, and gets you the best value in the market when your home or auto insurance expires.”
Covera built its platform after finding that many people don’t shop around when their existing insurance policies expire, as the process is too painful. Covera automatically shops for users every single year, and if a customer can get better value by changing insurance companies, Covera handles all of the work required.
Covera hopes to use the investment in three main areas: to support growth and user acquisition initiatives, to build a team that will accelerate product development, and to drive geographic expansion Canada-wide. The company uses data and propriety algorithms to help its customers find insurance alternatives.
In the initial stages of its project, which began in January 2016, Covera received $500,000 from Ferst Capital Partners, but the goal is to bring the total amount raised to up to $2 million by November 2017.
“Covera is using a unique go-to market strategy by targeting the insurance renewals space,” said Dominique Ferst, managing partner at Ferst Capital Partners. “First Capital Partners is proud tone leading this investment in an industry that has gained global traction whereby Canada has lagged behind.”
