Upcover says it is poised to “challenge the status quo” after completing a $19 million funding round.  

An $11 million equity round was led by RealVC, and backers include Antler Elevate, Betterlabs and Gandel Invest, run by the son and grandson of Melbourne billionaire John Gandel. Marshall Investments provided an $8 million debt facility.

QBE GM of commercial insurance Patricia Priest and former Zurich life CEO for Asia-Pacific Colin Morgan have invested, as have former senior executives from Westpac, Afterpay and McKinsey Australia. 

Commercial insurance broking insurtech Upcover says it doubled revenue and halved costs last year, and the funding will help it launch new digital insurance products.

More than 60,000 businesses use the Upcover platform.

Co-founder Skye Theodorou says the Sydney-based business has “defied the odds”.

“We’re competing against four of Australia’s largest companies that control 80% of our market. It’s no wonder we’re still the only start-up in this sector of insurance,” she said.

While 60% of home and motor insurance sales in Australia are completed online, the proportion is only 5% for the more than $20 billion of business cover sold annually, according to Upcover.  

“Time and time again, businesses and business owners are sold insurance that simply doesn’t fit their needs ...  It’s one of the few instances where automation is absolutely doing a better job than its human counterparts,” Ms Theodorou said.

“Brokers don’t always check in with businesses as they grow, to ensure their coverage continues to fit their needs. It’s something we’ve built into Upcover.”

The group, founded in 2019, offers professional indemnity, public and products liability, cyber, and directors’ and officers’ insurance underwritten by ProRisk under an authority to bind cover on behalf of Swiss Re.  

Co-founder and COO Anish Sinha says Upcover has already helped 1% of businesses in Australia.

“We’re now armed with the firepower to dominate the market, quadruple our penetration, launch cutting-edge digital insurance verticals, and embed AI at the core of Upcover’s business insurance broking and underwriting technology,” he said.