Insurtech startup Digital Risks has raised $10.4m in a second Series A funding round, allowing it to further its digital-first insurance offering for small and mediums-sized enterprises (SMEs).
The funding round was led by BHL Holdings, the owner of comparison website Compare the Market. Additional funding came from Nire Capital and existing investors Concentric, Seedcamp and Beazley.
It follows a previous Series A funding round in 2018, which raised £2.3m.
Digital Risks provides insurance to SMEs, startups and freelances in the form of a monthly subscription, which is designed to be highly personalised and customisable. The startup claims this approach sets it apart due to the combination of affordability, flexibility and personalisation it provides.
“We’re challenging [the] status quo head on, modernising business insurance for the better, and building a brand that businesses want to advocate,” explained Cameron Shearer, CEO and co-founder of Digital Risks.
“Our approach looks at every insurance cover from a new perspective. Rather than asking what risks we’re willing to cover, we ask what businesses need and then find the solution.”
Digital Risks insurance offering reflects growing interest in SME market
The investment in Digital Risks not only shows the potential for disruption that still remains within insurance, but also reflects the growing interest in and recognition of the market potential of SMEs.
“The SME sector as a whole is highly fragmented. Business owners and decision makers across a vast range of industries all have different needs and different motivations,” said Shearer.
“The traditional players’ propositions take a generalist approach to their products and user experience. As a result millions of SMEs in the UK and across Europe are neglected and underserved. They are either paying too much for their policies, or not being protected against the modern risks they face.
“Through our unique mix of technology and underwriting, we’ve created an online destination that meets all insurance requirements for SMEs, protecting entrepreneurs, freelancers and established businesses against emerging issues and technologies, without forcing them into lengthy and expensive contracts.”
Digital Risks is already showing success in this area, with 25% growth month-on-month and clients including Starling, Revolut and Appear Here.
“We’re living in the age of the disrupter. Across every industry new tech-led businesses are changing attitudes and processes for the better. In the insurance sector, a market deeply ingrained with traditional ways of working and thinking, it’s Digital Risks that is leading this charge. Offering flexible, bespoke cover to SMEs faster than ever before,” said Ian Leech, CFO at BHL.
“An extremely exciting business in its field, Digital Risks is looking to continue its rapid growth across the UK. This investment will help support the business to achieve this goal.”