Digital Risks, the insurtech providing insurance solutions to small- and medium-sized entities (SMEs), has closed its series A funding round.
The $10.4 million (£8,14 million) investment round was led by Compare the Market owner BHL Holdings. Nire Capital also participated in the round, alongside existing investors Concentric, Beazley and Seedcamp.
Digital Risks, which provides subscription-based insurance for entrepreneurs and SMEs, plans to invest the funding in further development of its in-house insurance software and driving new industry and product expansion.
The insurtech will also invest in the overall experience for its customers, including the claims process, management of covers and building new online account features.
Cameron Shearer, chief executive officer of Digital Risks, said: “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.”
Shearer continued: “Through our unique mix of technology and underwriting, we’ve created an online destination that meets all insurance requirements for SMEs. We’re protecting entrepreneurs, freelancers and established businesses against emerging risks and technologies, without forcing them into lengthy and expensive contracts. This investment will help drive further development to our product offering, customer experience and increase market penetration, driving growth into new markets at home and abroad.”
Ian Leech, chief financial officer at BHL, added: “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.”