The venture capital arm of CUNA Mutual Group, the Madison company that provides insurance products to more than 95% of U.S. credit unions, is investing in a medical insurance startup in California.
CMFG Ventures, the venture arm of CUNA Mutual, has led a $10.5 million funding round for Long Beach, California-based Coverance Insurance Solutions, which helps seniors navigate the Medicare insurance market by originating Medicare insurance applications through a centralized call center.
According to Coverance, the U.S. Medicare Insurance market is estimated at over $24 billion and more than 50 million people qualify for Medicare Insurance. By the year 2035, people over 65 years of age in the U.S. will surpass the number of teens under age 18 for the first time in history, the company stated.
"We invested in Coverance because of their commitment to helping seniors obtain the right Medicare Insurance policy to meet their individual needs," said Brian Kaas, president of CMFG Ventures, in a statement.
CMFG Ventures, which is also operated from Madison, makes investments of $1 million to $5 million in financial, insurance and data analytics companies. In 2019, CUNA Mutual reported managing assets of $24.6 billion and revenue of $4.1 billion.
