InsurTech Gateway receives approval from FCA as start-up accelerator
InsurTech Gateway has been authorised by the Financial Conduct Authority (FCA) as an insurance broker to provide funding, insurance capability and a testing environment for insurtech start-ups.
Aimed at reducing time and costs for proof of concept, the accelerator aims to provide an environment where start-ups can focus on product, market fit and their go-to-market strategy as opposed to the regulatory and capital requirements.
InsurTech Gateway is a co-investment from growth investor Hambro Perks and InsurTech Gateway co-founder Robert Lumley.
There are three portfolio companies currently involved with the accelerator: InMyBag, specialist insurance and data recovery for freelancers; By Miles, telematics-based car insurance for low mileage drivers; and Floodflash, an IoT flood sensor enabling instant settlement flood insurance; with five more expected to have joined by the end of 2018.
“The three main hurdles insurtech start-ups face are regulatory and capacity barriers, the funding gap and big insurers’ slow behaviour,” said Lumley. “That means there is little innovation happening in the sector because it is too difficult to get past the roadblocks. The InsurTech Gateway will change all of that.”
Stephen Brittain, co-founder and director of InsurTech Gateway, said: “For the last year and a half we have met insurance start-ups who by the time they got to shaping their idea, were exhausted. The InsurTech Gateway will get them through those roadblocks which killed their entrepreneurial spirit quickly, by accelerating them to proof of business so that they know whether they are sitting on a great big opportunity or wasting their time.”
Adam Rimmer, director and co-founder of FloodFlash: “The team behind the InsurTech Gateway has formidable breadth of knowledge when it comes to getting start-ups off the ground. They understand the opportunity for tech-enabled insurance, and their services and network will allow start-ups to leap ahead when developing their product for market.”
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