Insurtech startup Wunderite raises $7.2M

Boston-based insurtech startup Wunderite has raised $7.2 million in Series A funding led by existing investor Spark Capital.

Why it matters: The funding is driven in part from the insurance industry’s size, and its over-reliance on both antiquated software, and pen-and-paper workflows.

How it works: Wunderite builds cloud-based software to let independent agents collaboratively gather underwriting data from clients applying for insurance.

• It has a library of over 3,000 insurance applications it has digitized to make them more accessible to both agents and clients.
• Prior to Wunderite, applications were traditionally filled out in PDF format and exchanged via email, according to founder and CEO Peter MacDonald.
• But with its platform, agents can send applications to clients who fill them out online — and then later share that underwriting data with carriers.

Between the lines: MacDonald is familiar with the problem Wunderite is seeking to solve from time he spent at his family’s independent insurance agency.

• As a result, Wunderite is not trying to disintermediate the industry by targeting clients directly but instead looking to provide better tools for agents already in the market.
• “The majority of insurance in the country, especially property and casualty insurance, is sold through independent insurance agents, and that’s growing,” MacDonald said.

What’s next: The company plans to launch cross-mapping functionality that would allow a client to complete one application and automatically fill in data on multiple applications for different carriers or different types of insurance.

Of note: With the latest round, Wunderite has raised a total of $10.8 million to date.

• York IE and Correlation Ventures participated in the Series A funding, which also included some strategic investors.