Beazley takes part in £2.3m Digital Risks funding round

Insurtech startup  Digital Risks, a digital-only insurance broker has raised £2.25m in an investment round led by Concentric, with participation from Atami Capital, Seedcamp, London Co-Investment Fund and Beazley.

UK-based Digital Risks offers insurance cover entirely online with a flexible monthly subscription model and is targeting the digital startup and SME markets.

Digital Risks has developed its own proprietary software that automates the entire process of buying and managing insurance. The platform considers risks individually and places them with the most suitable provider. The system follows a similar model to the more traditional offline broker process, but sold entirely online and as a single experience.

The subscription-style model enables clients to pay monthly and modify or cancel their cover at any time, offering greater flexibility to businesses. Digital Risks’ products are backed by underwriters, including Aviva, Tokio Marine and Beazley.

Through the funding raised the company wants to grow its operations by scaling its marketing, tripling its team and developing new online insurance products. The business also has plans to expand internationally, starting with initial moves into Europe in the next 12 months.

Mark Goodman, head of corporate development at Beazley, said: “We have been working in partnership for the last year to provide cyber and professional indemnity insurance to their clients, which has provided the opportunity for us to experience first-hand the quality of the Digital Risks team and their proposition to the rapidly growing tech and digital sector.”

Cameron Shearer, CEO and co-founder of Digital Risks, added: “The digital industries are growing at a phenomenal rate, as new technologies spark disruption across practically every business sector. Yet the commercial insurance industry has been characteristically slow to respond, leaving many tech startups and SMEs unable to protect themselves adequately.

“The industry needs to evolve in so many ways, from product design, to distribution and customer engagement,” he continued. “How businesses want to buy and manage their insurance has changed, with traditional offline brokers and annual commitments seen as old-fashioned and inflexible to today’s digital natives. There’s also a lack of understanding of emerging technologies, the risks involved and how to cover them, particularly with the rise in online threats, such as data breaches and social engineering.

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