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.
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,” said Dan Abrahamsen, CEO of Cover Whale. “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.”
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.
“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” said Nick Nocito, Executive Director of Morgan Stanley Expansion Capital. “We are looking forward to partnering with the team as they continue to grow the platform and pursue new avenues of growth.”
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 a $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.
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SOURCE Cover Whale
