InsurTech: Cuvva Announces a New Funding Series and Car Insurance Offer

FACTS

• The British InsurTech featuring per-hour car insurance offers just raised £15 million from RTP Global, Breega, Digital Horizon and some other business angels. Existing investors include LocalGlobe, Techstars Ventures, Tekton and Seedcamp.

• Cuvva was established in 2016. They first focused on short-term, per-hour or per-day insurance solutions. Their range of offers has since been expanded through the addition of a service for learner drivers as well as a travel insurance.
• Next step : they now plan to make room for a fully customisable, app-based monthly car insurance offer to start early next year:
  • Ability to pause or end a contract at any time,
  • Costs adjusted each month based on actual car use.

KEY FIGURES

• 250,000 customers
• 40M hours insured
• 3% share on the British car insurance market
• Most downloaded insurance app in the UK in 2019

CHALLENGES

• Lower costs on a market where few InsurTech aimed for the car industry. Despite the increasing number of launches, few players have managed to stand out. Cuvva naturally intends to grasp an opportunity, hoping their customers will choose their monthly insurance offer when buying a car. This option is meant for longer periods.
• To achieve this goal and withstand competition they bet on attractive prices. All the more so that monthly subscriptions in this industry generally come at a high cost for British customers. Besides, over the years, insured parties would even pay much more than new customers. Cuvva addresses this issue praising more transparent and flexible pricing scales. Also, hey don’t rely on intermediaries (brokers or comparison services), meaning that their contracts’ prices can be adjusted downwards.

MARKET PERSPECTIVE

• Cuvva observed two main use cases for their car insurance offers:
  • Most of their customers choose Cuvva when they purchase a car, as a temporary insurance service while driving their vehicle home,
  • Other customers would rely on their services when driving someone else’s car (larger number of subscriptions during school holidays).
• Cuvva aims at becoming a one-stop point for their customers. Their app would then include their entire set of offers, which would then be bound to be further expanded.