Coverance Insurance Solutions Raises $10.5 Million led by CUNA Mutual Group
Coverance to provide Medicare Insurance platform to CUNA Mutual Group, which serves 95% of credit unions and 30 million consumers
Sep 28, 2020, 13:34 ET
LONG BEACH, Calif., Sept. 28, 2020 /PRNewswire/ -- Coverance Insurance Solutions is pleased to announce a $10.5 million financing led by CUNA Mutual Group, with participation from existing investor Strandview Capital. Coverance is an independent insurance agency that helps seniors navigate the complex Medicare insurance market to obtain the optimal policy and save money. CUNA Mutual Group is a leading insurance, financial services and technology company that helps credit unions provide their members with the solutions to attain financial security through all life stages.
"We are very excited to work with CUNA Mutual Group and explore opportunities to offer Medicare insurance options to credit union members", said Chris Mullins, CEO and founder of Coverance. "We use senior-focused marketing, data analytics and automation to improve how seniors purchase Medicare insurance."
Coverance is rapidly building a trusted brand with its celebrity spokesperson Kelsey Grammer, from television shows Cheers and Fraser. The current COVID-19 pandemic highlights the critical importance of proper Medicare insurance for seniors and has accelerated the trend toward centralized call centers versus how much of the industry has been traditionally served through in-person insurance agents.
CMFG Ventures, the venture capital arm of CUNA Mutual Group, led the financing and recognizes the importance of Medicare insurance to consumers. "We invested in Coverance because of their commitment to helping seniors obtain the right Medicare Insurance policy to meet their individual needs", said Brian Kaas, President of CMFG Ventures. CUNA Mutual Group has $25 billion in assets and offers consumer and commercial insurance, retirement and investment solutions, and business solutions including data and analytics, lending capabilities and marketing services.
The U.S. Medicare Insurance market is estimated at over $24 billion and growing rapidly. Over 50 million people qualify for Medicare Insurance, and over 10,000 seniors turn 65 every day. By the year 2035, the U.S. population of seniors over 65 will surpass teens under 18 for the first time in history.
The financing will include participation from existing investor Strandview Capital. Strandview developed the initial business plan with the Coverance management team and provided the capital to launch and rapidly grow the business. "We have sponsored this management team at two previous successful companies employing a very similar business model", said Mike Sekits, Managing Director at Strandview. "The Coverance team has deep experience marketing complex financial services to seniors. They are employing a proven business model – including a highly efficient call center, state-of-the-art technology, and a highly effective marketing strategy – to build a leading brand in the Medicare insurance market."
About Coverance Insurance Solutions
Coverance Insurance Solutions is a nationally licensed insurance agency focused on meeting the needs of seniors in the rapidly growing Medicare insurance marketplace. Coverance has partnered with Kelsey Grammer of Cheers and Frasier to build trust with consumers and rapidly build a national brand. Coverance originates Medicare insurance applications through a centralized call center and offers seniors a wide variety of insurance options through direct relationships with all the major national Medicare insurance carriers such as United Healthcare, Humana and Aetna. Headquartered in Long Beach, California, Coverance is dedicated to the mission of helping seniors make the best choices when selecting their Medicare insurance coverage.
For more information, please visit www.coveranceis.com.
About CUNA Mutual Group
CUNA Mutual group is a financially strong insurance, investment and financial services company enabling people to make financial decisions that work for them. The company was built on the principle of "people helping people" and the belief that a brighter financial future should be accessible to everyone. For more information, visit cunamutual.com.
About Strandview Capital
Strandview Capital manages committed capital to invest in financial services and financial technology companies. Strandview seeks special investment opportunities with highly experienced management teams that result in attractive, private equity returns. Strandview incorporates a unique and strategic hands-on approach that leverages its deep industry specialization and relationships to add substantial value to its partner companies.
For more information, please visit www.strandview.com
SOURCE Coverance Insurance Solutions
SOURCE Coverance Insurance Solutions
