The two hope to connect emerging insurtechs with investors
Trade body Insurtech UK has partnered with online investment platform, Seedrs to help fuel the insurtech sector’s growth.
Members of the trade body hope to benefit from Seedrs expertise as well as getting fundraising and marketing support.
Under the partnership, the two intend to connect emerging insurtechs with investors looking to disrupt the traditional market, securing investment for insurtechs and fuel adoption of innovation.
It will also see insurance professionals and peers receive early access to new raises via their Chartered Institute of Insurance (CII) membership number.
Both Insurtech UK and Seedrs feel that it is crucial for the industry to be involved in this process as professionals in insurance will invest in what they know and understand.
Deputy chair at Insurtech UK, James York said: “Our combined networks bring a powerful community together that is focussed on transforming insurance.
”It will allow our members greater access to finance opportunities, whilst enabling industry angels to have a more comprehensive overview of the investment opportunities currently available in the UK market.”
Its portfolio includes Insurtech UK members’ Wrisk and Pluto, both firms raised capital on the platform.
Wrisk’s three funding rounds resulted more than 2,440 Seedrs investors and Pluto raised £644,000 at the end of 2019 from 895 investors.
For Insurtech UK, this is an opportunity to fulfil its mission to be a key driver of growth and global leader in innovation, therefore effective funding is vital.
Seedrs, chief executive, Jeff Kelisky said: “We see the insurtech market altering the terrain of the insurance market in the same way neo-banks have changed retail banking for the better.
“We are delighted to be selected by Insurtech UK to help expand our longstanding support of the sector, building on foundations we’ve created with many Insurtech UK members.
”We welcome more to join us, as we become the investment platform of choice for insurtech startups and scale-ups in this industry.”
During the pandemic there has been a number of funding raises in the insurtech industry suggesting that this particular sector is on the up.
This is especially the case when Covid-19 has forced a shift for firms to adopt increasingly digital methods – a trend that is set to continue post-pandemic as business models change to fit social distancing as the UK reopens.
“Despite Covid-19, we have been delighted to see a number of recent member raises from Bought by Many, Envelop Risk, Bikmo, Canopy, Honcho, Qlaims and Urban Jungle. This partnership will be sure to fuel more,” York added.
Last year the UK insurance market contributed £29.1bn to the UK economy, with the UK insurtech sector is playing an increasingly important role in driving innovation and technology in Europe’s largest insurance market.
And during recent years, the UK’s insurtech sector has seen continued growth, for example raising more than $1bn in 2018 as well as contributing heavily to the $5bn that insurtech businesses raised globally in 2019.