Disruptive Capital buys controlling stake in insurtech REG for US expansion

Disruptive Capital Investments, a £250 million fund controlled and managed by City financier Edi Truell, has acquired a majority stake in REG (UK), an online counterparty risk management platform for the UK general insurance market.

Disruptive’s investment will help build on REG’s already strong base in the UK Composite Insurer and Lloyd’s Markets and support its expansion into international insurance markets.

The investment values the technology business, launched in 2014 with Disruptive Capital’s support, at some £20 million.

DCIL’s new investment of £8 million will allow REG to accelerate its rollout to UK General Insurance clients, increase functionality and migrate out to key international markets, commencing in the US.

REG’s founder and CEO, Michael Phair, will retain a 20% stake in the business.

REG uses data capture and advanced analytics to alleviate the increasingly burdensome due diligence and regulatory compliance processes faced by insurers and intermediaries in managing their counterparty relationships. It is rapidly becoming an industry standard utility for broker and agency management, helping insurers and intermediaries focus on client revenue enhancement, reduce the burden and cost of regulatory compliance and mitigate the risk of regulatory failure.

“InsurTech is arguably the most exciting opportunity in the insurance sector, using much needed innovation to streamline hitherto clunky processes and enhance value,” Edi Truell said. “REG is leading the charge. I’m delighted that Disruptive is now its majority shareholder on the back of our capital investment. REG is a disruptive technology that is changing the way counterparty risk is managed in the insurance sector. In just two years, it has over 50,000 billable connections, and has captured over 2,300 insurers and intermediaries as registered users, including many of the sector’s most recognised names.”

Michael Phair added: “We are delighted to welcome Disruptive as our majority owner. We have worked with Edi since our launch, not only benefitting from a “hands on” funding source during our initial growth spurt, but also from his deep and successful experience in private equity investments in the insurance and financial sectors. Disruptive‘s new investment will allow us to build on our success to date, supporting our growth both in the UK and internationally and enabling increased resource and development spend for the benefit of our clients and the London Market.”

REG offers a comprehensive database of the insurance distribution chain and provides 24/7 Alerts should corporate, financial, sanctions or regulatory details change that could impact risk assessment or regulatory compliance. REG’s platform allows clients to assess and verify broker and counterparty suitability and exchange new Terms of Business Agreements in minutes, rather than days or weeks under current manual processes.

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