UK-based Insurtech start-up Wrisk is using crowdfunding to raise money for what it calls ‘macroinsurance.’
Wrisk hopes to shake up the insurance industry with an app to bring the buying, maintaining and claiming of insurance into the digital age. After closing a “super-seed” funding round of nearly $4.9 million earlier this year, Wrisk has launched a $650,000 equity crowdfunding campaign on Seedrs.
Wrisk will offer all types of insurance, from motor to travel, home to health on its mobile app. The team calls the approach of covering multiple types of insurance in a single plan “macroinsurance”, something that should start to catch on as customer demand for simpler, streamlined policies increases.
In a statement, co-founders Niall Barton and Darius Kumana called the concept of insurance, “the idea of sharing the loss of one against many” that is great in theory but poorly executed. “We believe that consumers deserve better, so we’re giving insurance a much-needed digital upgrade,” they said. “Wrisk will truly transform the user’s experience of buying, updating and claiming on their insurance. And while it’s no easy task, we’re delighted that household names such as Munich Re, Hiscox and BMW are willing to lend their support and help us realise our vision. We are also extremely excited to offer our future customers the opportunity to own shares in Wrisk through Seedrs, and to play a part in shaping our ambitious future.”
The team is made up of 12 technology and insurance experts who have worked with actuaries and data scientists to develop a unique ‘Wrisk Score’, a similar concept to that of a credit score for personal risk. The idea is to allow customers to really understand the risks they face and how these risks can be reduced to bring premiums down.
As well as targeting consumers who already buy insurance, Wrisk is also eyeing an untapped market; those who avoid buying insurance in the first place because the process is so painful. This includes 61 per cent of UK renters who don’t have contents insurance and 31 per cent of millennials who have never bought travel cover.