Denmark-based Insurtech company Penni.io has reportedly secured €2 million in funding from three major Nordic region insurance industry participants. The firm is planning to use the capital raised to expand its operations across Europe and globally.
Established in 2016, Penni.io aims to assist insurance companies, brokerage firms and distribution partners with their digital transformation efforts.
Penni.io helps insurers with selling and customizing their line of products and services online. At present, insurance firms and brokers are experiencing challenges when it comes to digital sales via partnerships, because of the limitations of internal IT systems. Traditional or legacy IT systems don’t have proper API integrations to enable effective digital collaboration.
Many insurers also need help with knowing how to establish customer journeys for digital sales with partners. Penni.io addresses these issues for its customers. The global Insurtech market and ecosystem received a record €2.8 billion in investments during 2018, and continues to attract billions in additional investments.
Niels Mortensen, who has served as a senior manager at several Nordic insurance firms such as Alka and Codan, and also invested in Penni.io’s latest round, stated:
“They impress by solving a large need for online sales and service through partners. They can connect the industry’s old IT systems to modern solutions – and they have proven that they can execute faster and use less resources than insurance companies would.”
Penni.io plans to work with companies across the globe. The Insurtech firm has been able to increase digital sales for large insurance firms in France, the Nordics and the United Kingdom.
France-based APRIL, an international services group, has partnered with Penni.io, and digital bank Anytime, in order to introduce an insurance technology-focused sales channel.
The majority of insurance firms are still dependent on outdated IT infrastructure and legacy software, which may create serious problems when offering new digital “plug and play” sales products that aim to meet the changing demands and requirements of today’s clients.
Laurence Williams of APRIL noted:
“It was too resource intensive for us to do it ourselves. But Penni.io has a specialized white label platform solution that allows us to execute a faster go-to-market strategy.”
Jeppe Klausen, CEO at Penni.io, confirmed that the firm is planning to expand into new markets. He claims that his firm’s products offer more flexibility than its competitors.
Klausen added that his firm is hoping that their next investor will come from outside of Denmark.
He pointed out:
“There are no venture funds or investors at home that have the size or the appropriate profile to help us move forward.”