Digital Risks has today announced that it has raised a further $10.4m in a Series A funding round. The insurtech offers industry leading, flexible, customisable subscription based insurance cover that’s designed to meet the needs of small and medium-sized businesses, and the new and emerging threats they face.
The investment was led by BHL Holdings, a worldwide group with a strong reputation for insurance innovation and owner of popular comparison website Compare the Market. Nire Capital also participated in the round, alongside existing investors Concentric, Beazley and Seedcamp.
The new funding comes during a highly successful period for the London based start-up, which is growing by 25% month on month and set to triple its headcount by the end of the year. The business has also struck a number of high profile partnerships in recent months with well known SME focused brands including Starling, Revolut and Appear Here.
Today’s investment announcement shows significant market confidence in Digital Risks, and will be used to further develop its technology and drive expansion over the next 12-18 months. With the UK insurance industry the largest in Europe and the fourth largest in the world, and with 5.7million small and medium-sized UK digital businesses operating in the UK, Digital Risks is well placed to meet its target of growing ten-fold over the same period.
Digital Risks is one of the only digital-first insurance providers for SMEs, enabling customers to generate quotes, and set-up their cover in minutes, all tailored to their specific requirements and served in real-time. The insurtech has made a name for itself by providing highly personalised, subscription based cover which is more relevant for today’s SMEs, start-ups and freelancers.
With digital-first businesses looking for tailored, flexible support, but not at a cost, bringing this personalisation to the insurance sector has proven to be a game changer. Digital Risks offers the largest range of insurance products you can buy online, including professional indemnity, cyber insurance, management liability and medical malpractice.
Cameron Shearer, CEO and co-founder of Digital Risks, said: “The SME sector as a whole is highly fragmented. Business owners and decision makers across a vast range of industries all have different needs and different motivations. The traditional players’ propositions take a generalist approach to their products and user experience. As a result millions of SMEs in the UK and across Europe are neglected and underserved. They are either paying too much for their policies, or not being protected against the modern risks they face.
“We’re challenging this status quo head on, modernising business insurance for the better, and building a brand that businesses want to advocate. Our approach looks at every insurance cover from a new perspective. Rather than asking what risks we’re willing to cover, we ask what businesses need and then find the solution.
“Through our unique mix of technology and underwriting, we’ve created an online destination that meets all insurance requirements for SMEs, protecting entrepreneurs, freelancers and established businesses against emerging issues and technologies, without forcing them into lengthy and expensive contracts. This investment will help drive further development to our product offering and increase market penetration, driving growth into new markets at home.”
Ian Leech CFO at BHL adds: “We’re living in the age of the disrupter. Across every industry new tech-led businesses are changing attitudes and processes for the better. In the insurance sector, a market deeply ingrained with traditional ways of working and thinking, it’s Digital Risks that is leading this charge. Offering flexible, bespoke cover to SMEs faster than ever before.
“An extremely exciting business in its field, Digital Risks is looking to continue its rapid growth across the UK. This investment will help support the business to achieve this goal”