Insurtech Brolly bags £1m seed funding to “build a fairer insurance market”
The AI driven app aims to automate the process of shopping around for insurance, helping ensure people aren't overinsured and paying too much
Brolly, an AI-driven insurtech app, has raised £1m in seed funding in a round led by U.S.-based venture fund Valar Ventures, which also included Pi Labs, Young Gun-founded Entrepreneur First via its £40m-backed Enterprise Capital Fund, and a host of high profile angel investors.
Aiming to “build a fairer insurance market”, users enter all their existing insurance policies into the app – which then analyses any potential gaps or duplicates in cover, helping ensure people aren’t “overinsured”.
Founded by Phoebe Hugh and Mykhailo Loginov, the former is an ex-Aviva underwriter and product manager, while the latter is a former Skype and Microsoft engineering manager – with the duo meeting each other via Entrepreneur First.
Hugh’s lightbulb moment for Brolly came after she became increasingly concerned about how many consumers lacked a basic knowledge of the insurance process, such as not knowing what cover they’d actually bought, managing those existing policies, and shopping around for better deals.
Speaking exclusively to Tech Crunch, Hugh explains how she started Brolly because she wanted to offer people a better deal on their insurance, while educating more car owners about the actual process:
“One woman I spoke to had inadvertently purchased two car insurance policies when she obviously only needed one.
“She had paid in excess of £10,000 cumulatively over 11 years for two policies where one should’ve been void, because there was no system in place that notified she was doubling up on cover.
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“Insurance companies and brokers predominantly acquire customers through price comparison sites, a loss-leading channel, fighting on price to get the customer through the door.
“Then they hike up the price at renewal for loyal customers, capitalising on people’s inertia. This is an immensely complex and established cycle to break, and that’s the challenge we’ve taken on”.
One of our best business ideas for 2017, insurtech is part of a general growing trend of start-ups and small businesses trying to disrupt to traditionally opaque industries – in a bid offer a more transparent service.
Much like proptech and adtech, there’s certainly money to be made offering an inventive techy take on a longstanding sector, with the insurence industry thought to be worth around $4 trillion.