Insurtech startup Cuvva is to expand into long-term motor insurance, after raising £15m in a series A funding round.
The move follows the recent appointment of former Lloyd’s of London chairman Bruce Carnegie-Brown as Cuvva’s chair.
RTP Global, Breega and Digital Horizon joined as new investors, alongside Localglobe, Techstars Ventures, Tekton and Seedcamp. A number of angel backers, including Jardine Lloyd Thompson chief Dominic Burke and former Gocompare strategy chief Faisal Galaria, also participated.
The London-based startup, which specialises in hourly car insurance for shorter journeys, will launch a pay-monthly subscription service early next year.
Cuvva founder Freddy Macnamara said the firm is now selling three per cent of all motor insurance policies in the UK. It has over 250,000 customers.
“The way insurance is sold hasn’t kept up with the way people live their lives now. We buy lots of goods and services via flexible subscriptions to suit our on-demand lifestyles. Why shouldn’t you be able to do that for insurance?” he said.
Cuvva will also use the funding to double its headcount over the next 18 months.
“The insurance industry across Europe is ready for a fresh approach. The UK has a long history of initiating change in the way that insurance is sold and Cuvva has devised a product that has incredible appeal for a new generation of car owners and borrowers. We are thrilled to be able to begin this journey to build a whole new way of buying insurance with Freddy and the team,” said Anton Inshutin, managing partner at RTP Global.