Insurance technology (insurtech) start-up Bought By Many has raised a £7.5 million (US$9.5 million) Series A venture round, and reinsurance firm Munich Re is one of the backers.
Bought By Many uses social media and search data in order to provide insight-driven insurance to customers. Through the addition of this insight, the insurtech hopes to enable insurance pricing to be more informed and efficient, which makes partnering with them attractive for any provider of insurance or reinsurance capital (like Munich Re).
The Series A funding round was led by VC specialist Octopus Ventures, but with Munich Re and its HSB Ventures also participating, alongside existing Bought By Many investors.
As well as securing the funding, Bought By Many announced that it has struck a deal with reinsurance firm Munich Re, signing a long-term insurance agreement with Munich Re and its Digital Partners business unit, which will allow the insurtech start-up to launch its own insurance products and expand into new territories.
Previously Bought By Many was just planning on helping others to sell insurance, but through a partnership with Munich Re the start-up can leverage the reinsurers balance-sheet and systems in order to sell insurance more directly to its users.
Meanwhile, Munich Re benefits by getting its reinsurance capacity upfront to consumers, with an insurtech start-up providing the sales channel.
Insurtech’s are becoming increasingly like MGA’s or agents, providing a route to consumers for risk capital, be that insurance or reinsurance capacity.
Bought By Many hopes to target underserved areas of insurance, so where products are either deemed too niche, too expensive, or unattractive for a traditional insurer to try to sell.
Using its social and search data insights the company will seek to make entering these niche insurance markets more profitable, and that will also be an attractive proposition for Munich Re as capacity provider.
Steven Mendel, co-founder and CEO of Bought By Many, commented; “This commercial agreement and investment marks another important milestone in our journey to transform the customer experience of insurance. In partnership with Munich Re, we can now create a full stack insurance proposition, satisfying the unmet customer needs revealed by both our data analytics and ongoing conversation with our 250,000 members.”
Andy Rear, CEO of Munich Re’s Digital Partners unit, added; “Digital Partners is a global venture designed to partner with the world’s leading insurtech companies. We are excited to be helping Bought By Many realise their vision of transforming the customer experience of insurance.”
Malcolm Ferguson of Octopus Ventures stated; “I am delighted Octopus is leading this round. Bought By Many’s innovative distribution model and technology platform, combined with their exceptional traction with customers and world-class team, puts them among the world’s leading insurtech start-ups. The commercial agreement with Munich Re promises to super-charge this.”
Bought By Many will aim to launch branded, mobile-first insurance products with Munich Re’s backing in early 2017, the firm says.