AI insurance platform Corgi said on May 28 it raised $106 million in a funding round led by investment firm TCV that valued it at $2.6 billion.
The funding round underscores strong investor appetite for startups using artificial intelligence to modernize the financial services sector.
Here are some details:
- The Series B1 round also included participation from Prime Capital, Kindred Ventures and other investors.
- The latest round comes just three weeks after San Francisco-based Corgi announced a $160 million Series B round at a $1.3 billion valuation.
- Corgi CEO Nico Laqua said the company was profitable last month and that the new funding would help the company expand into additional segments, including trucking, small business and sports.
- Corgi is an insurance technology company that provides underwriting, claims handling and embedded insurance products for commercial customers.
What began as a lawsuit filed against Church Mutual Insurance Company on a $1 million-plus claim dispute turned into a potential $2 million award against a contractor after a jury found it intentionally interfered with the insurance contract and caused the litigation.
The case, The Calvary Baptist Church of Denver and Church Mutual Insurance Company V. Skyyguard Corp., came about after it was discovered a contractor orchestrated an inflated appraisal process. That prompted the church to settle with Church Mutual for $50,000 and side with the carrier.
In a counterclaim that played out in the U.S. District Court for the District of Colorado, the church sued the contractor for breach of contract and negligent misrepresentation, and the insurer sued for fraud and intentional interference of the insurance contract causing a breach of the misrepresentation clause and punitive damages.
“I think this is the first time, certainly in Colorado, that I’ve seen a claim be brought for intentional interference with the insurance contract for breach of the misrepresentation clause and we were very intentional in how we brought that claim,” said Jeremy Moseley with Spencer Fane, who represented Church Mutual along with attorney Will Brophy.
The jury awarded damages in a May 22 finding to both the church and Church Mutual, and it found that the contractor intentionally interfered with the insurance contract and caused the litigation between the church and insurer.
It awarded $115,000 for the church, $282,000 for fraud to the carrier and awarded $823,000 in punitive damages. The finding requires repayment of the $1.1 million paid on the claim for a total judgment that could exceed $2 million.
One legal expert watching the case sees the case as an example of abuse in the appraisal process that has become too common.
