EXCLUSIVE: Start-up insurance provider to raise £1m to conquer UK market
Digital Risks, a London-based start-up selling insurance cover online, is looking to raise £1 million from venture capital firms to fund its UK expansion while preparing to target clients in continental Europe.
Set up 2.5 years ago and having left the beta phase in August this year, Digital Risks, which operates as an appointed representative, offers public and employer’s liability cover, professional indemnity and directors’ and officers’ liability, among others, to digital businesses.
Digital Risks’ target group includes fintech firms, software and app developers, advertising agencies or film and TV production companies.
Clients sign up via the website to a subscription as opposed to an annual contract, and can adjust the cover or the package terms any time, pull documents or manage payments.
Digital Risks cooperates with underwriters such as Aviva and Tokio Marine HCC and is launching a new management liability product, said Ben Rose, insurance director at Digital Risks.
“Delivering online means that we don’t have any admin expenses a traditional broker would have and also means that we can offer a client-focused user experience,” Rose said.
“Underwriters are interested in working with us particularly because we are agile,” he noted. Digital Risks also appeals to underwriters as they look for distribution into digital businesses, an area which is not in brokers’ focus, Rose explained.
While Digital Risks’ client group in the past may have asked particularly for professional indemnity cover, they are now increasingly seeking cyber security insurance, not least because their clients are requesting such protection before contracting with them.
“Many companies, in particular start-ups wouldn’t buy cyber insurance because it’s an expense which is not compulsory and which they are buying for the first time,” Rose said, suggesting that Digital Risks is more likely to offer cover for the price these firms may be willing to pay.
“We are seeing lots of traction from customers. Our team has doubled in the last few months,” Rose said.
Financed by private investors, the majority of whom are senior insurance executives, Digital Risks plans to work on its mainland Europe expansion in the next 12 months, an undertaking which would likely require another funding round.
“In many European states people are not used to buying insurance online. This is something that we need to tackle, but the types of businesses that we target are early adopters,” Rose said.
Intelligent InsurTech Europe will take place at the Grange Tower Bridge Hotel on Wednesday November 16.
To find out more about the most anticipated insurtech event of the year, visit the Intelligent Insurtech Europe website.
