FCA selects three insurance start-ups to join its third regulatory sandbox
The Financial Conduct Authority (FCA) has selected 18 firms to join its third regulatory sandbox cohort, including three companies – Wrisk, Etherisc and Sherpa – working in insurance.
The Sandbox will enable firms to test their products in a “live market” environment, says the FCA. It hopes that its sandbox underlines its commitment to financial services innovation.
It received 61 applications in total and under a third (18) of them were chosen to take part. Those involved cover a range of sectors.
Two fifths (40%) of firms selected were based outside of London, compared to just a quarter (25%) in the first cohort and a slightly over a third (35%) in the second cohort.
Who are Wrisk, Etherisc and Sherpa?
- Wrisk - A start-up offering a usage-based contents insurance products available on a smart phone, with a “Wrisk Score” that acts like a credit score for personal risk. Wrisk was seeking to top up a £3m raise in late October.
- Etherisc - Provides fully-automated decentralised flight insurance. Etherisc uses smart contracts via blockchain. It also provides crop insurance and social insurance.
- Sherpa - Sherpa acts like a personal lines advisory broker, without the usual human interaction. Customers will be able to upload their details using their smartphone or computer. It then builds them a risk profile and make recommendations on products. The Malta-based company raised $2.3m in August.