UK Insurtech Wrisk Raises £1,105,199 via Seedrs

Wrisk, which is on a mission to transform the way insurance is sold, “working with leading automotive brands and insurers,” has raised 88% (£1,105,199) of its £1,250,003 target (with 29 days left in the sale) from 275 investors via Seedrs.

Located in London, Wrisk operates in the Finance & Payments sectors (Digital Mixed B2B/B2C). Incorporated in August 2015, the firm reports a valuation (pre-money) of £24.3 million.

The investment summary is as follows:  Equity offered 4.90%; Share price: £2.94; Tax relief; EIS.

Business highlights are as follows:

  • 20K+ active policies writing ~£9M of annualised GWP*
  • Strong pipeline of partner opportunities across diversified base
  • US Entity now setup. Advanced conversations (US OEM & insurers)
  • Targeting a surge in policy count as planned new partners go live

Key features include: Secondary Market; Seedrs nominee min. £11.76 +.

Wrisk is a digital-first insurance business that “works with leading automotive brands to shape the future of their customers’ mobility and insurance protection experiences.”

The company claims it has already “established B2B2C partnerships with the likes of BMW, MINI, the RAC and Heycar.”

As noted in the update, modern cars are now “computers on wheels.”

The push towards electrification, digital path to purchase and new ownership models “are driving transformational change within the global automotive sector.”

The firm’s insurance know-how combined with the capabilities of our future-focused technology platform sets them up “to innovate and meet the rapidly changing needs of this market.”

As noted by the firm’s management:

“Having successfully emerged from a challenging period where Covid effectively stalled the automotive sector, we now have an increasing pipeline of UK opportunities that are competing for our attention. In addition we are seeing interest from partners in other geographies (e.g. USA) who see the global potential of the Wrisk platform.”

The update also mentioned that Wrisk is “an agency in the UK – acting on behalf of major insurance companies.”

The agency model, known as a Managing General Agent (MGA), “is widely used in the insurance sector.”

As with all MGAs, the insurance liabilities “remain on the balance sheet of Wrisk’s insurance partners,” and as such their own revenue will come from:

Commission per transaction (15-25%), paid by our insurer partners.

Discussions with OEMs and Insurers “to scale Wrisk globally are gathering momentum.”

They have “built the technology that underpins our platform with the aim of making it easily configurable for different markets whilst navigating the regional regulatory environment and localised working practices can be challenging.”

For this reason, their international model is “to offer the Wrisk platform as a managed service working with major insurers who have regional domain experience and pricing expertise.”

The firm’s business model framework will be as follows:

  • Setup charge
  • Annual Licensing fee
  • Per Policy monthly charge

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