WithCoverage raises $42 million to disrupt insurance broking with a modern, data-driven approach to coverage and risk placement.
In an effort to challenge conventional, commission-based insurance brokerage models for rapidly expanding companies, New York-based InsurTech WithCoverage has secured $42 million in a Series B fundraising round.
According to Beinsure, Sequoia Capital and Khosla Ventures led the Series B financing, with 8VC and Crystal Venture Partners also contributing.
The capital will be utilized to promote entry into new industry verticals, increase WithCoverage’s workforce, and improve its product capabilities.
WithCoverage was founded by Max Brenner and JD Ross, Co-founder of Opendoor, with the goal of revolutionizing the way scaling businesses evaluate, acquire, and handle insurance.
The technology enables companies to detect risk exposures earlier and optimize coverage structures by combining AI-driven analysis with internal teams of legal and insurance experts.
Insurance brokerage has traditionally relied on commission-based incentives, but the company’s concept is based on a flat-fee pricing structure. WithCoverage links its value offering to quantifiable results like lower costs and better risk posture by separating revenue from premium volume.
Every client interaction with WithCoverage starts with an AI-powered review of current insurance plans. To find coverage gaps, inefficiencies, and overspending, the system examines operational data and policy wording. After that, internal teams create a customized risk plan, oversee execution from start to finish, and manage a competitive carrier process.
The company claims that this strategy can reduce exposure to uninsured or underinsured risks and save some clients more than $100,000 annually.
Through a centralized interface, the platform offers facilities for managing policies, certificates, claims, and renewals in addition to placement and negotiation. This gives clients continuous access to their risk profile and insurance coverage, replacing spreadsheets and email-driven operations.
Commission-based economics and little structural change have long been characteristics of the insurance brokerage industry. According to WithCoverage, smaller and mid-sized organizations have historically not had access to the same level of analysis, whereas major corporations can afford internal risk management teams.
Sequoia Capital partner Roelof Botha said,
“WithCoverage harnesses AI to augment human expertise, advancing the intersection of insurance and technology. The insurance brokerage industry has largely remained unchanged over the past few decades and now stands poised to benefit from advances in artificial intelligence.”
WithCoverage Co-founder JD Ross said,
“Insurance brokers have operated on the same commission model for decades – they get paid more when you pay more. We built WithCoverage to lead with our clients’ interests, not our own, and end that conflict of interest.”
Khosla Ventures general partner Keith Rabois said,
“JD and I teamed up at Opendoor to take on one of the most entrenched industries in real estate. Risk management is even more outdated. Max and JD are applying software, AI, and proper incentive alignment to a system that has needed reinvention for decades.”
