Clearcover overview

Clearcover is a mobile app that leverages machine learning to assist drivers with searching and buying coverage, filing claims or upgrading their policy. The company states its able to cut costs through its API platform and data analysis, which enable it to integrate with partners that can communicate with customers when an insurance quote is relevant. Their partners include car sales, insurance shopping partners and personal finance services. The result is a large percentage of their policies are completed online end-to-end, with no human interaction. 60% of its claims are also handled digitally.

The Chicago-based startup also offers Alternate Transportation coverage, whereby insureds who have been in an accident are reimbursed with a rental car, bike, Uber or Lyft.

In 2018, the startup announced the expansion of its API offerings for financial services. As a result, companies from price comparison sites to car manufacturers will be able to easily add Clearcover car insurance to their current offering.

Clearcover claim it had tripled policy sales in 2019, compared to that of 2018, and that it had thereby quadrupled its premium.

In January 2020, just under a year since their $43m Series B, Clearcover announced it had raised a $50m Series C. The round was led by OMERS Ventures, and will be used to add state-markets - the company aims to eventually reach all fifty states.

In June 2020 Snapsheet and Clearcover expanded their partnership, with Snapsheet now disbursing digital payments to claimants and vendors for Clearcover, on top of digitising the other steps in the claims process. The move provides better payment status transparency for customers, as well as offering increased opportunities for automation.

Just over a year since its $50m Series C, Clearcover raised $200m in April 2021 as part of a late-stage funding round, reportedly achieving Unicorn status. Clearcover revealed it is currently exploring new product areas to expand into. It is also planning to expand geographically - aiming to reach around 25 states by the end of 2021, up from its current 15. 

In March 2023  Clearcover announced its most recent financial results. The company ended 2022 with a loss ratio of 114.5%. The startup ended 2022 with $140.7 in DWP, an improvement of 79% on the year before. The results come as the company is now active in 19 US states, with Texas being the most valuable to the firm by generating $42m in written premiums.

Also, in March 2023 Clearcover revealed it held the majority of its liquid assets with the now collapsed Silicon Valley Bank. Since the collapse and subsequent takeover by HSBC, the FDIC stated that all depositors would be made whole with full access to their funds through a bridge bank the agency had created. This is important to the company because the size of its cash position to its liquid assets is considerably higher than the industry as a whole.

During April 2023 it was reported Clearcover readying to announce a 15% cut to its workforce which formerly stood at approximately 450 after the company recorded a loss for 2022 of $38.7m. It was also reported to be trying to exit California. 

In June 2023 Clearcover Agent Hub, an agent resource center was launched. It is designed to help agents better serve customers and sell Clearcover policies with greater ease. The Agent Hub is also offering updated digital resources, such as new videos, relevant articles and enhanced training content. The launch follows soon after the company announced a partnership with Experian to provide embedded insurance solutions.

In August 2023 Clearcover launched “Choice,” its embedded insurance solution that provides a customisable end-to-end auto insurance integration for brands. The integration, powered by Clearcover’s proprietary API-based technology platform, enables brands to seamlessly deliver price and policy comparisons from various carriers so customers can choose the option that offers the best value for them.

Map showing the location of Clearcover

Chicago, United States

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Key people

Derek Brigham Co-Founder & Chief Operating Officer
Kyle Nakatsuji Co-Founder & CEO
Victor Pascucci Board Director
Michael Yang Board Member
Adam Fischer EVP, Product and Technology
Vandana Venkat Chief Insurance Officer
Alyssa Spagnolo Board Observer
Norman Smagley Executive Vice President and CFO