Foxquilt, the North American insurtech that focuses on bringing insurance options to small and medium sized businesses (SMBs), announced Thursday an $8 million dollar Series A round led by Luge Capital.
According to Foxquilt, the latest injection of funds will be used to increase hiring, product development and to further expand across its current territory of the United States and Canada.
Rather than a standard “one-size-fits-all” insurance blanket, Foxquilt’s platform offers businesses the ability to choose only the coverage they need and be underwritten based on their specific business type and requirements. Their customizable products include general liability, professional liability, workers’ compensation, cyber and commercial automobile. The insurtech utilizes AI technology and propriety data to assess risks and make recommendations.
“Our goal at Foxquilt has always been to make life easier for small business owners. Whether you’re a
sole proprietor or part of a larger enterprise network or marketplace, our technology-powered suite of
products is made to digitize the insurance process and take one thing off an overfilled plate,” said Mark
Morissette, CEO and Co-founder of Foxquilt.
The latest round arrived just over a year after Foxquilt’s $3.5 million seed round in July of 2020.
Leader of Foxquilt’s Thursday round, Luge Capital, is a serial investor in insurtech startups – having put funding towards digital insurance marketplace Finaeo, AI-based insurance information platformer ProNavigator, and digital insurance solutions provider Westhill.
“Of all the solutions we looked at, Foxquilt was by far the best one for SMBs and, given that they design
their own insurance products and underwriting process, they can save their customers time, risk and
money,” said David Nault, General Partner of Luge Capital.
The insurtech space may be getting crowded but there is plenty of clientele to go around. A 2021 study by Capgemini found by the end of 2020, the total market cap of listed insurtechs surpassed $22 billion, and policyholders are gravitating towards insurers that offer better convenience, advice and reach. As a result, 50% of customers today are willing to consider coverage from a new age player, the report found.