ICON Corporate Finance, the Bristol-based technology-focused investment bank, has played a key role in securing a £5m Series A funding for innovative InsurTech start-up Anorak.
The deal is seen as a landmark for disruptive digital businesses in the traditional life insurance sector and flags opportunities for similar InsurTechs operating in the sector as Millennials and GenX embrace financial protection and ‘embedded insurance’ products.
Using its expertise in InsurTech Software and fundraising, ICON introduced insurance and LifeTech software focussed VC and CVCs from across Asia, Europe and the US to Anorak’s leadership team.
It positioned the company as a future global software leader in the LifeTech insurance sector. ICON supported Anorak with financial modelling, the preparation of the investment deck, and investor interaction that led to a successful investment round with a Tier 1 VCs, CVCs and super angels.
ICON believes that embedded insurance services will pressure established insurance providers to innovate, partner or lose out to digital disruptors of Tech, Health, Life, P&C, Pet, and financial services. It predicts an abundance of funding rounds and acquisitions as a result.
Embedded insurance is the digital first delivery of insurance within the purchase of a product or service and is designed to enhance the customer’s buying experience. Across financial services digital disruptors enableevery company to offer online payments. With Klarna every company can offer buy-now-pay-later solution, and with InsurTechs every company can offer Life or P&C insurance.
The fundraise will enable expansion of both Anorak’s distribution network and advice platform, which provides automated and ongoing assessment of users’ financial vulnerability and cover requirements throughout their life. It is currently the only platform to provide a seamless omnichannel experience that also allows users the option to speak to expert advisers.
Anorak’s fundraising was led by Outward VC, with Triple Point Ventures, and existing investor Kamet Ventures, formerly Axa’s incubation fund. It was backed by angel investors including Nic Kohler, former CEO of Hollard Insurance; Paul Evans, Chairman of Allianz plc and board member of BUPA and Swiss Re Europe; Charlie Delingpole, CEO and founder of ComplyAdvantage; and Will Neale, founder of Fonix and Grabyo.
David Vanek, CEO & co-founder of Anorak said: “Our regulated automated insurance advice platform can be integrated into existing partners’ eco-systems so that people can access a ‘whole of market’ life insurance recommendations while using everyday services such as digital banks, online mortgage brokers, investment platforms, digital money management service and challenger banks.”
ICON’s Nicky Cotter added: “Technology and innovation are reshaping the future of the insurance industry and demand for tech solutions has never been higher. There are still too many ways that insurance companies are difficult to do business with so finding ways to combine digital data with analytics can deliver powerful client experiences that are personalised, predictive, and proactive – which is a gamechanger for the industry. Anorak is a prime example of this.”