SaaS-insurtech Vertical Insure has closed a $4 million seed round co-led by Rally Ventures and Dundee VC.
Founded this year, the company looks to help industry specific vertical SaaS companies increase profits through embedded insurance.
With Vertical Insure, SaaS companies can offer customized insurance options at the click of a button — resulting in added value and new revenue without any extra overhead or IT bandwidth.
Products offered include event cancellation insurance and shipping protection.
Embedded insurance is a huge opportunity. In numerous industries the addition of embedded insurance has been shown to double the revenue of a vertical SaaS company.
These platforms know the needs of their customers, and Vertical Insure leverages their existing data to recommend, underwrite and price customized coverage to ultimately create a more valuable product.
Vertical SaaS platforms are ideally positioned to offer right-sized coverage. Leveraging their relationships, they can collapse applications down to a single checkbox at checkout and earn revenue for enabling ease of purchase.
Platform businesses should get the full benefit of dramatically simplifying insurance for their customers.
The U.S. insurance market was valued at over $1.3 trillion in 2021. There is an enormous demand for the safety net that good insurance provides, but outdated technology and legacy practices have resulted in complex processes and expensive, cookie-cutter coverage. Companies and individuals end up with basic offerings that leave many needs unmet.
Vertical SaaS platforms have become the trusted operating and financial partners for the industries they serve.
Customers run their entire businesses on these platforms and typically will first look to them for expanded products and services.
Now, with Vertical Insure, SaaS companies can offer customized insurance options at the click of a button – resulting in added value and new revenue without any extra overhead or IT bandwidth.
Vertical SaaS leaders are experts in their vertical, but they aren’t experts in insurance. Vertical Insure is 100% built around each business and its customers, with tailored recommendations and guided integration. Companies can bundle the range of products their customers need, like event cancellation insurance and shipping protection, and make insurance part of any purchase in any vertical.
Insurance is a data business and vertical SaaS platforms have an immense amount of data from customers in their vertical to design customized insurance coverage and novel new products.
“The Vertical Insure founding team has decades of experience in data management and the insurance industry. This is the right team to reimagine insurance, and we couldn’t be more excited to partner with them on that mission,” said Justin Kaufenberg, Managing Director at Rally Ventures and Co-Founder and former CEO of SportsEngine, a vertical SaaS platform that sold tens of millions of dollars in embedded insurance.