EXCLUSIVE: Clearcover launches Illinois-based reciprocal exchange to jumpstart entry into NSA

By James Thaler

Feb 12 - (The Insurer) - Clearcover has launched its Illinois-based reciprocal exchange as part of its entry into non-standard auto, with the new vehicle aimed at driving the insurtech’s profitability and growth.

The auto insurtech recently capitalised Clearcover Inter-Insurance Exchange (CIX) and has received regulatory approval to begin writing business.

It is initially launching in Illinois, with an aim to scale its operations to additional markets in the near future.

Clearcover has described it as offering expanded reach, where agents can serve a broader range of customers, including those with inconsistent insurance histories, foreign licenses, or fewer than three years of driving experience.

It also says it offers competitive commission structures to enable agents to grow their sales pipelines by connecting more drivers to affordable and personalised insurance solutions.

The insurtech has touted offering AI-powered tools designed to empower customers with seamless self-service capabilities and streamline agent workflows.

The Insurer had previously broken the news that the Kyle Nakatsuji-led firm was working on the reciprocal to spur its entry into non-standard auto.

Clearcover is aiming to capitalise on the broad turnaround in auto market conditions over the last two years, while also leveraging existing technology, distribution, and operations to expand into the segment with minimal need for additional fixed-cost investment to spur organic growth.

A spokesperson confirmed the launch of the reciprocal in a statement to The Insurer.

"Launching CIX marks a turning point as we continue to redefine auto insurance,” Nakatsuji, who co-founded the firm and serves as its CEO, said in a statement.

"By broadening our market focus and harnessing our tech-driven platform, we’re empowering more customers and agents while delivering unmatched efficiency and competitive pricing,” he added.

Clearcover already recently began expanding its appetite to provide insurance solutions to a broader range of customers in Texas through Clearcover General Agency (CGA).

The company said that together, these initiatives highlight Clearcover’s drive to create flexible, customer-centric offerings that align with evolving market needs.

In an interview with The Insurer TV in June, Nakatsuji said Clearcover is making “great strides” in its path to profitability, which the entry into writing non-standard business is expected to accelerate.