Insurtech startup raises $5 million in funding round

iCover, a Missouri-based insurtech that provides algorithmic underwriting for insurance companies, has raised $5 million in Pre-Series A funding.

The lead investor for the round was Kesan Parasuraman, a private investor who also led iCover’s seed round in August 2021. The company will use the funds raised in the latest round to increase technical staff, expand sales and marketing, and bolster research and development efforts related to its AI underwriting framework and private blockchain network.

iCover is currently working with six insurance companies and launching a range of products, including income protection, final expense, and term and whole life. Insurance companies will use iCover’s proprietary AI/algorithmic underwriting platform and patent-pending QUI eApp technology to deliver a five-minute, point-of-sale buying journey for consumers, the company said.

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The company’s omnichannel capabilities will allow insurance firms to launch products and sell through agency, direct-to-consumer, and embedded channels.

“In terms of transaction and momentum, 2022 has been a great year so far,” said Hari Srinivasan, founder and CEO of iCover. “Fast and accurate point-of-sale underwriting has become more relevant than ever before. With this capital infusion, we can fuel our sales and marketing efforts through 2023 and expand iCover’s intellectual property with increased R&D in the areas of AI and blockchain.”