Insurance technology startup company, Brolly, recently closed a $1.17M fundraising round that was led by Entrepreneur First, Pi Labs, and Valar Ventures.
In addition, many angel investors joined the round. These include Christian Woolfenden (Managing Director of Photobox), Alan Morgan (Chairman of MMC Ventures & Adfisco), Michael Mire (Non-Executive Director of Aviva), Christian Angermayer (found of Apeiron Investment Group), Bruce Macfarlane (Managing Partner of MMC Ventures), Matt Bellamy (singer of band Muse), Tim Hugh (cellist of the London Symphony Orchestra), Richard Fearn (Director of Friday Club), and Tim Levene (Managing Partner of Augmentum Capital).
What is Brolly
Brolly is a company that has launched an artificial intelligence-driven app that seeks to “significantly evolve the antiquated insurance market.” The company remarks that this is one of the biggest investments to date in the United Kingdom insurance technology sector.
The startup was founded in 2016 by former Aviva product manager and underwriter, Phoebe Hugh, along with Mykhailo Loginov, former engineering manager for Microsoft and Skype.
James Fitzgerald, co-founded of Valar Ventures said, “The pace of innovation in the insurance industry has not met consumer demand and we see massive potential for growth in this market.”
“Brolly’s unique positioning and dedication to building an insurance ecosystem around the customer impressed us. We’re excited about their plans to build on what they’ve achieved so far by developing the product further and bringing more partners onto the platform.”
The founders have stated the company was built to provide solutions to three consumer-related insurance problems: difficulty making decisions on what the best insurance products to buy are, chaotic management of current policies, and lacking advice from personal insurance brokers.
Hugh commented, “The $5tn insurance industry has not materially changed in the past century. We’re on a mission to build an insurance marketplace that actually works for people.”
Hugh also said, “Millions of people haven’t switched their insurance provider for years and are paying hundreds of pounds more than they need to for inadequate coverage. Brolly is radically changing this broken market so customers have more control over their policies and purchases and can make informed decisions based on their individual needs.”
Changing the Face of Insurance
As of 2017, Brolly has three sets of services which include Brolly Locker, which provides scanning and secure management of existing policies, Brolly Adviser, which advises customers on what to buy and why, and the upcoming Brolly Shop, which looks at the market to see if the user has the best product coverage for the money they are spending, and helping users switch providers.
“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,” Hugh said. “Then they hike up the price at renewal for loyal customers, capitalizing on people’s inertia. This is an immensely complex and established cycle to break, and that’s the challenge we’ve taken on”.
With so many using insurance every day of their lives, it’s exciting to see an app like this getting funding and making changes to the way people interact with their insurance policies.