The Insurtech platform assumes the back office tasks of the agency | Business Insurance

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California-based COVU is destined to be more than the digital platforms that agents and brokers increasingly use and operate to streamline their operations. Safavi presents the company as a new model that combines elements far beyond a technology platform (such as outsourcing).

“Typically what the platform is defined in the traditional sense in the way you use it is as a tool – software that an agency could start using, which is great, but the agent has to learn how to use it to be successful” Safavi said. “In our case, we are not giving the agent a tool. We are managing his book for them. We tell them that we will do the comprehensive management of the work for you and help you grow. It will open up your time so you can continue to do what you want to do.”

COVU launched in its current form in early 2022, after some fine-tuning by Safavi and his co-founders. It has quickly gained ground, growing from four employees in January to more than 40 today. The company also announced on August 17 that it secured $10 million in seed funding earmarked for building and scaling COVU. ManchesterStory Group led the round, backed by angel and venture capital investors from the insurance and technology industries.

Safavi said the money is double what the company was initially seeking. Investor interest exceeded expectations.

“We realized that there is a good amount of investor demand for this model,” Safavi said.

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The success of the funding is significant, Safavi explained, adding that he remains focused on the big picture.

“Being an entrepreneur, you’re happy for a few days and then you go back into execution mode and you’re looking for the next big thing,” he said.

New model

COVU combines a platform with a substitute that handles the administrative work.

The goal of the platform is to help independent insurance agents and carriers better manage their risk and make smarter insurance decisions through AI-driven policy recommendations, as well as business sales and service reporting. COVU calls it a “turnkey offering” in which it takes over front-end and back-office tasks so insurance agents can focus more on building customer relationships, growing their business and embracing digital operations. .

COVU combines mobile self-service with on-demand service from professionals when needed, the company explained. The agents download their administrative and administrative processes using the COVU system and technological infrastructure. At the same time, policies and clients continue to register with the carrier under the agency, with all client communication co-branded with the agent.

The platform is also designed to help agency/broker clients optimize their needs.

“It’s called an all-in-one AI-enabled platform because it also has our touch,” Safavi said. “We believe that in the future, AI will play a very important role in providing risk recommendations to clients to help them navigate their risk management and insurance management.”

Partner ‘integration’

COVU refers to the agencies that take its platform as partners, although it also considers the clients of the partners as its own.

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“We see the end customer as the person who needs protection and risk management. Agencies are our partners and we help them better manage their clients together,” Safavi explained. “Once we work with agencies, we deal directly with clients.”

COVU does not integrate with its agency partners. Rather, it moves everything you need to your platform to get organized and get started.

The selling point is that agencies don’t have to spend more on COVU than they normally spend on managing their work.

First comes an exploration or discovery call with COVU’s production/tech team to discuss processes, needs, gaps, and data transfer. The parties are also exploring whether the agency has staff that could move to COVU as administrative and administrative functions are taken over.

That step is to ensure services are not interrupted and to avoid agency layoffs as COVU increases. COVU hires the affected staff to help run the administrative office, Safavi said.

“If they don’t have service personnel, we assign personnel to the agency, so we help fill all the gaps,” he explained.

Agencies don’t need to worry about API integration. However, COVU has its own API integration with other technology providers.

The agencies can leave the agreement at any time and continue to own each individual account. COVU manages everything else.

“We even have our own app that will allow the customer to do self-service and everything else,” Safavi said. “Because we are a single platform, we manage everything. The agent doesn’t have to worry about the rest.

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COVU currently has several client agencies and already manages “tens of millions of dollars in premiums,” Safavi added.