Insurtech platform CoverSure, operated by Claycove23 Insurance Tech Pvt, has secured $4 million (approximately INR 33 crore) in its Pre-Series A funding round, led by Enam Holdings Pvt Ltd. The Mumbai-based startup plans to utilize the fresh capital to develop a consumer-centric insurance engagement platform, leveraging data intelligence and machine learning.
Expansion of Customised Insurance Solutions
CoverSure aims to provide personalized and advisory insurance services across various segments, including health, life, motor, and travel. By incorporating machine learning, the platform intends to offer tailored solutions that cater to the unique needs of each policyholder. Founded in 2023, CoverSure prides itself on being an AI-first insurance platform designed to help users maximize the benefits of their insurance policies through data-driven customization.
“Through our platform, we aim to simplify the user’s lifetime experience with insurance, not just the sales,” said Saurabh Vijayvergia, founder and CEO of CoverSure. This focus on the overall user experience is intended to differentiate CoverSure from traditional insurance providers.
Addressing Low Insurance Penetration in India
India’s insurance penetration stands at 4.2%, which is significantly lower than the global average of 7-8%. To bridge this gap, the insurance industry is increasingly relying on technology. CoverSure’s innovative approach aims to contribute to this transition, making insurance more accessible and user-friendly.
Growing Investor Interest in Insurtech
The insurtech space has been attracting substantial investor interest. Recently, BimaPay, another insurtech startup, raised $2 million led by LC Nueva Investment Partners LLP to expand its technology infrastructure and footprint in the insurance ecosystem. This trend underscores the growing confidence in technology-driven solutions within the insurance sector.
Market Projections and Future Growth
According to Inc42’s State of Indian Fintech Report Q4 2023, the insurtech ecosystem in India is projected to exceed a market size of $304 billion by 2030, growing at a compound annual growth rate (CAGR) of 17% from over $87 billion in 2022. This rapid growth highlights the potential for startups like CoverSure to significantly impact the industry by introducing innovative, tech-driven insurance solutions.
