Boston-based insurtech Corvus Insurance is ready to soar after its latest Series C funding round. The company, founded only four years ago by Phil Edmundson and Michael Lloyd, has announced a new Series C funding round in which it raised $100 million to take its “smart commercial” products and distribution to the next level. Combined with the results of its Series B funding round, the insurtech has raised a total of $147 million to date.
“Corvus is uniquely positioned to acquire a significant share of the commercial insurance market due to our software, data science playbooks, and team,” said Mike Lloyd, Co-founder and Chief Product Officer at Corvus. “Our proven ability to extract actionable insights from novel data using AI and then apply those insights to improve our underwriting, the broker/client experience, and loss prevention for our policyholders will enable us to continue to grow in a fast and scalable way across many product lines.”
As a result of this latest funding round, Corvus Insurance now has a market valuation of $750 million, bringing it one step closer to “unicorn” status. The Series C funding round was led by global venture capital and private equity firm Insight Partners, and included all of its previous institutional investors. As part of the transaction, Insight Partners’ Managing Director Deven Parekh will join the Corvus Board of Directors, and Principal David Spiro will join as a Board Observer.
“Commercial insurance is in the early stages of embracing data science and AI to better distribute and underwrite policies,” said Deven Parekh, Managing Director at Insight Partners. “Corvus is leading the way by building a foundation in cyber insurance with a world-class team, transformative product, and ambitious vision. We are excited to partner with the Corvus team and support them in their next phase of growth.”
A focus on growth, cyber, underwriting, and enhancing the company’s proprietary CrowBar®
With the growth in Gross Written Premium of 250% in 2020, Corvus says it exited January at a $120 million annual premium run rate with an average policy size of $9,000. Its plans for 2021 include a continued focus on its hyper-growth trajectory at scale, as well as a doubling of its total employee headcount in 2021.
Turning to products, it also has a clear plan on how it will allocate this latest infusion of funds to help transform the commercial insurance marketplace; a market that now generates over $400 billion in premium per year. In addition to “doubling down” on underwriting, product development as well as go-to-market strategies the company also plans to enhance its proprietary digital platform, CrowBar®.
Finally, the new funds will be used to expand the company’s product offerings, particularly in the growing cyber insurance sector.
“At Corvus, we are employing the power of data to build insurance products that result in a safer world,” said Phil Edmundson, founder and CEO of Corvus. “During these times of unprecedented cyber attacks, we are arming brokers and their policyholders with the most intuitive tools and capabilities to mitigate risks for companies of all sizes. With the biggest fundraising round of a cyber insurance company to date, we will continue to realize our vision in making our world a safer place.”