COVU, an AI-driven insurtech firm, has made its fourth agency acquisition with the purchase of the century-old Ford Insurance Agency of Maine. Founded in the early 20th century and long managed by the Lonsinger family, Ford Insurance represents a legacy stronghold in the insurance sector, known for its high client retention, long-standing carrier relationships, and deep community ties.
COVU’s Strategic Approach
Unlike flashier insurtech companies that rose and fell with direct-to-consumer hype, COVU has taken a different route. The company has been buying up respected independent agencies and integrating them into a centralized AI-native servicing platform. Initially, COVU developed ‘Vero,’ a direct-to-consumer AI-driven risk adviser, but the founders soon concluded that supporting traditional insurance agents rather than bypassing them might be more successful.
Preserving Agency Identity
CEO Ali Safavi describes COVU not as a buyer, but as a builder of ‘the most trusted risk and insurance service platform in America.’ The company promises to retain frontline service personnel and operate acquired agencies under their existing banners while digitizing back-office functions through its proprietary AI tools. Gary Lonsinger, whose family spent generations cultivating Ford Insurance, stated that COVU was the only acquirer offering a stock sale without stripping the agency of its identity.
Enabling Agents with Technology
COVU’s model allows agencies to pursue one of two paths: expansion or exit. Agencies aiming to grow can leverage COVU’s infrastructure, including AI for client servicing, CRM, risk analysis, and marketing automation. Those looking to transition out can sell and offload operational burdens while maintaining service levels and reputations. ‘We’re not replacing agents,’ Safavi insists. ‘We’re enabling them to deliver better outcomes – more consistently, at lower cost.’
Industry Impact
COVU’s emphasis is on ‘servicing equity’: centralized technology and processes that reduce inefficiencies while preserving human capital. With AI handling over 30% of client requests autonomously, the platform has reported strong year-on-year growth and recently extended its Series A funding to $22 million, with an additional $30 million in debt funding. COVU’s rise presents a noteworthy case study for insurers, MGAs, and reinsurers, offering a roadmap for how technology can scale service delivery without bypassing distribution.
