Aviva invests in insurtech start-up Neos backed by Munich Re
Connected home insurer Neos said that it secured £5 million in series A investment from Aviva Ventures and backing from Munich Re.
The investment is aimed to deliver a new type of insurance that proactively protects against theft, fire and water leaks.
“In a fantastic move for Neos that will guarantee our major growth over the next year, Aviva Ventures have led a £5 million Series A investment, with Munich Re joining us as key strategic partners,” Neos CEO Matt Poll said.
“The new investment will let us not only develop our connected home systems but also grow our underwriting capacity, through an MGA (managing general agent) agreement with Munich Re.”
Munich Re has signed a strategic partnership that will see them underwrite Neos policies.
Connected home is going to completely change the £7 billion home insurance market, Neos claims. “It’s an industry that’s stayed stagnant for far too long, but Internet of Things (IoT) – your Alexa, your smart appliances and, with Neos, your security system – is set to grow by 156 million home connections by 2024,” according to a company statement. These connected systems give power back to consumers, informing and protecting them, as well as taking work off their hands, according to the insurtech start-up.
Neos was the first home insurance product to step in before any kind of damage had been done to a house, according to the statement. Insurance used to be a product with a best-case scenario of never seeing a return on your investment – that payout when something bad happened. Now, consumers can actually get positive use from the service they’re paying for: home security, early warning of problems and an easy way to check in on their home from anywhere in the world, the statement said.
Andrew Rear of Digital Partners- Munich Re, commented: "Neos is defining the standards for the future home insurance industry in the UK. By putting smart sensors into the home and alerting the owner on their smartphone, Neos enables issues to be addressed before they become bigger problems. Detecting a leak early is a much smaller problem than coming home to a big flood. It’s a clever proposition which will have an impact on the wider insurance industry."
Ben Luckett, managing director at Aviva Ventures, added: “Investments are all about talent, future, and disrupting the status quo. Our involvement in Neos reflects all of these three elements, surrounded by great technology delivering a great purpose. I am very excited about the opportunities that this investment presents and how we can move focus to making a real impact in people’s lives, from fixing to preventing the bad things happening.”
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