London-based insurance fintech Superscript announced it had bagged a £45m funding round led by the owner of Comparethemarket.com today, in a boost to the UK’s burgeoning ‘insurtech’ sector after a flurry of investment in the past two years.
Superscript, which offers insurance to smaller firms and high growth tech outfits, said the round had been led by existing backer Comparethemarket-owner BHL UK, alongside Fortune 500 insurer The Hartford.
The fresh capital comes after a bumper period of growth for the firm that has seen it deliver a fivefold increase in customers base and bag partners including Amazon Business and Virgin Money Bank.
Superscript became the first UK insurtech to land a Lloyd’s of London broker licence in 2020, and launched the first Lloyd’s-backed insurance product for digital asset businesses last year.
Bosses as Superscript said they were now poised to scoop up customers as small firms look for insurance cover amid tricky economic conditions.
“In the context of a challenging macroeconomic environment and shift in global investor appetites, this funding round represents a huge vote of confidence in what we’re building at Superscript,” said Cameron Shearer, CEO and co-founder of Superscript.
“The flexibility, customisation and affordability we offer puts us in a unique position to meet the insurance requirements of small businesses during turbulent times, as they navigate economic challenges this year.”
He added that the firm’s new international backers would help spur a growth push for the firm as it targets a global presence.
The deal marks a major push into the fintech sector for insurance group BHL as it looks to build to its digital offer alongide the flagship Comparethemarket.com marketplace.
Insurtech investment boom
Analysts at Beahurst said last year that insurtech was among the fastest growing subsectors of fintech in the UK and attracted record cash when the pandemic struck.
“Between 2012 and [the first half of 2022], UK insurtech companies secured £1.56bn worth of equity investment, across 235 announced funding rounds,” Beahurst said.
“Equity deal numbers and amount raised by the sector peaked during COVID-19, as demand increased for remote insurance options during lockdown—with 52 fundraisings announced in 2021, worth £702m (versus just one £4.61m round in 2013).”