Big insurer executives back startup Upcover

Insurtech Upcover has raised $2.7 million in seed funding and $2 million in debt in a round backed by QBE LMI GM Patricia Priest, as well as former Zurich Insurance Global Life CEO for APAC Colin Morgan.

Also participating were Perth-based Betterlabs, Antler Australia, Etika CFO Raf Uy, and Bricks + Agent CEO Raf Niesten.

“As my first startup investment, I am delighted to be backing this great team,” Ms Priest said. “It’s inspiring to see the new ideas and fresh thinking that Upcover is bringing to the table.”

Founded in 2019, Sydney-based Upcover offers coverage for small businesses and sole traders. It says more than 5000 are registered on the Upcover platform, with products underwritten by ProRisk under an authority to bind cover on behalf of Swiss Re.

“We know we are onto something unique,” said Cofounder Skye Theodorou, who was formerly Project Manager, Business Change, One Path Integration, Life and Investments at Zurich.

“To be backed by some of the best in the insurance and banking business has been an incredible way to close out our seed fundraise,” she said.

Upcover says the insurance industry has long been “plagued” by convoluted questionnaires, overcomplicated terms, and lengthy quote timeframes, and it is “changing all of this”. The insurtech plans to use the money raised for product development and customer acquisition.

Its technology platform integrates with insurers and online businesses, offering live professional indemnity, public and products liability, cyber privacy liability, covid bounceback insurance and commercial motor – including rideshare and delivery –, tools of trade, glass, personal accident and management liability.

“The calibre of the founding team, their innovative business model and traction they have gained in the market to date present a fantastic opportunity,” Betterlabs CEO James Edwards said, adding it was his team’s first investment in an Australian insurtech.