Cuvva, an insurtech startup that is based in the UK, announced earlier this week it secured £15 million through its Series A funding round. Founded in 2015, Cuvva claims it is building a new kind of insurance that’s flexible, simple and jargon-free. The company noted it sold its first policy in 2016 and since then, its mobile app has sold more than one million policies.
“The idea came about after co-founder, Freddy Macnamara, couldn’t get hourly short-term insurance, so he set out to build a marketplace for flexible insurance. Cuvva connects customers directly with insurers, providing comprehensive cover within minutes, and 24/7 customer support. Pioneering short-term insurance, Cuvva was the first to provide both hourly motor insurance and insurance via an app in the UK.”
With the funds from the Series A, Cuvva is planning to launch its very own pay-monthly car insurance which won’t be an “annual policy dressed up in monthly repayments.” The company further explained:
“There won’t be a deposit, so you won’t have to pay for multiple months of insurance up front. And there won’t be any interest. Instead, you’ll buy one month at a time, and you’ll be able to cancel anytime you want – for free. No hefty cancellation fees here. All you’ll have to do is pay up till the end of the month. You’ll be able to pause your subscription in a few taps in the app (or cancel it altogether), and you’ll be able to renew it whenever you like. Plus, we won’t use dual pricing – so no punishments for being a loyal customer – and we’ll offer no claims bonuses.”
Along with launching the car insurance product, Cuvva reported it will be using the funding to hire employees the company needs to make the insurance a “massive success.” Cuvva went on to add:
“That doesn’t mean we’re going to stop investing in temporary car insurance. Far from it. This isn’t about dropping one product for another one that seems more interesting at the time. It’s about adding rocket fuel to our big, audacious mission. We are going to be the marketplace for insurance on mobile. We want Cuvva to be the place where you can get exactly the kind of insurance you want, exactly when you need it. That might be a pay-monthly car insurance subscription. It might be an hour’s car insurance so you can borrow a friend’s car. Or it might be a single-trip travel insurance policy to cover that impulsive weekend abroad.”