Specialist insurer Hiscox has partnered with tech start-up Digital Fineprint to investigate how data from social media can be used to educate small businesses on their risks and respective insurance solutions.
Hiscox said many small businesses are underinsured yet face a number of business interruption risks from expensive lawsuits or costs associated with physical damage to property.
Small business owners may be unaware of their risks and the types of cover available to them.
However, the partners plan to develop a tool to personalise insurance for these firms based on their social media data through Digital Fineprint’s social media analytics.
The data gathered will be used to highlight insurance covers that would be relevant for small business.
Steven Wilkins, Head of Underwriting Insight at Hiscox, said; “Many of our customers are one-man bands and micro businesses who are busy driving their companies forwards without the time to fully understand their insurance needs.
“We’re excited to investigate the role that social media could play in providing a more personalised service to these customers and help them make a more informed decision.”
In addition to funding the project, Hiscox will provide a team of underwriters and IT personnel to work closely with Digital Fineprint to gain a deeper understanding of the technology and mentor the start-up.
Erik Abrahamsson, Chief Executive Officer (CEO) at Digital Fineprint, said; “We’re thrilled to be working with the team at Hiscox on this innovative project.
“Hiscox’s collaborative approach to innovation provides the perfect environment for us to develop our solution in partnership with one of the leading SME insurers in the market and we are looking forward to helping UK SME’s ensure they are adequately covered.”
The Hiscox partnership comes in addition to various programmes the tech start-up has already undertaken with leading re/insurers across the globe this year.
In July this year, rapidly expanding Digital Fineprint received the “Best Investment in FinTech” award from the UK Business Angels Association; they’ve also been nominated for several additional international awards.