Superscript, an insurance brokerage and technology platform targeting SMEs and ‘high growth’ technology companies, has raised £45m ($54m) in Series B funding.
Founded in London in 2015, Superscript comprises two core insurance businesses. An online-only ‘self-service’ platform available to UK clients, including small businesses, sole proprietors and landlords, and an advisory brokerage service called SuperscriptQ available in the UK. and across the European Economic Area (EEA). It targets technology companies with complex risks that are more difficult to insure, such as medical malpractice and professional compensation, including customers such as London-based fintech unicorn Paddle.
underwriting factor
Like almost every other sector, the insurance tech industry has been hit hard by the global recession, with companies like Policygenius and Next Insurance cutting staff over the past year, and publicly traded companies like Lemonade and Hippo cutting jobs. , and Root have seen a significant drop in all transactions compared to last year.
But in every yin there is a yang, and there are signs that the insurtech space is still very active and active. Germany’s Wefox last year raised his $400 million at a $4.5 billion valuation, while Ohio-based Branch reached unicorn status on the back of his $147 million funding round. bottom. And now it’s Superscript’s turn to remind the world that insurtech may be working after all.
But what separates insurtech wheat and chaff?
Superscript co-founder and CEO Cameron Shearer explained to TechCrunch: “Rapid growth in customer numbers is generally seen as a good thing, but when underwriting is incorrect, claims, or losses, start to add to overtime pay. If so, you may not experience “true” results for your business for years. ”
Superscript co-founders Ben Rose (Chief Underwriting Officer) and Cameron Shearer (CEO)
Superscript’s underwriting partners include many well-known names in the insurance industry, including AXA, Beazley At Lloyd’s, RSA and MS Amlin. And this multi-career approach that spans region- and sector-specific expertise is part of why Shearer believes his Superscript is well-positioned to thrive as it expands over the long term. It’s all about providing coverage that is tailor-made for the types of risks that small businesses specifically need.
“Historically, many investors have focused on acquisitions, reflecting a technology investment model,” added Shearer. “More recently, with more mature insurtechs and a lot of IPO experience, we’re seeing investors shifting their focus to underwriting differentiation and strength. Superscript delivers more favorable loss rates. From day one, we have focused on sustainable growth and quality underwriting to deliver a highly personalized user and underwriting experience with sophisticated underwriting, technology and data capabilities.”
From a technology and data perspective, Superscript says it uses “unique machine learning technology” to differentiate itself from the rest. This includes the entire self-service product acquisition and onboarding process that directs prospects to the correct channel. Big data insights are also a big part of that promise, using machine learning models to “better” assess risk by processing different data points.
“Other parts of our technology look at the data we collect about the insurance market to see where insurers and insurers are more likely to accept risk and what data points are key to a particular insurer’s underwriting process. We will evaluate whether it will be possible,” said Shearer. “This will once again improve operational efficiency for both our processes and the insurers.”
The company has raised approximately $24.4 million to date, including an approximately $20 million tranche raised in two rounds in 2020. With another $54 million in bank, the company said it plans to strengthen its underwriting and brokerage capabilities and continue to invest in machinery. learning tool.
Although Superscript is limited to the European market, it has long-term ambitions to become a global player. In fact, the company claims it has already acquired some customers in North America, Australia and the Middle East, but they are customers who clearly need access to the European insurance market.
Superscript’s Series B round of funding was led by Comparethemarket owner BHL UK, with participation from The Hartford and Concentric.
