Cover Whale Secures $40M from Morgan Stanley to Expand Commercial Auto Insurtech
Cover Whale Insurance Solutions, an insurtech firm focused on connected insurance for commercial autos, secured $40 million in growth equity financing from Morgan Stanley Expansion Capital. This capital injection aims to accelerate Cover Whale's investments in its technology platform, analytics capabilities, and broaden its product offerings, supporting its expansion and profitability targets. Established in 2020, Cover Whale leverages proprietary algorithmic underwriting and real-time telematics data to enable agents to bind trucking insurance policies online rapidly and continuously underwrite them throughout their term, achieving competitive loss ratios in the commercial trucking insurance market.
Cover Whale reported $133 million in gross written premiums in the first half of 2025 and is targeting $277 million for the full year, indicating strong growth momentum. Morgan Stanley Expansion Capital initially engaged with Cover Whale in 2024 through structured debt and has transitioned to an equity partner, reflecting confidence in Cover Whale's scalable platform and strategic direction. This partnership underscores significant investor interest in technology-driven solutions addressing niche segments of commercial insurance.
Operating as a managing general agent (MGA), Cover Whale collaborates with nearly 5,000 agents and has written over $1.3 billion in gross premiums since inception. The company's platform incorporates continuous underwriting, AI-powered driver coaching, and driver safety programs aimed at loss reduction and risk management. Such technology adoption aligns with broader industry trends toward automation and data-driven underwriting to improve efficiency and underwriting discipline.
Morgan Stanley Expansion Capital serves as the growth-focused private investment arm within Morgan Stanley Investment Management, with a focus on late-stage growth equity and credit investments in high-growth industries, including technology and insurance technology sectors. This investment is a component of Morgan Stanley's wider strategy to capitalize on insurtech innovations that drive operational efficiencies and enhance market penetration in specialized insurance markets.
Overall, this funding round highlights the continued relevance of insurtech innovation in transforming commercial auto insurance underwriting and risk management. For insurance professionals, the growth of such technology platforms may influence competitive dynamics, distribution models, and the adoption of AI and telematics solutions in underwriting practices.