The UK has almost a quarter of all of Europe’s insurtech startups and London has as many insurtech companies as the rest of Europe combined, according to consultancy firm McKinsey & Company.
Some of those names make up some of the UK’s fastest growing companies. Insurtechs Zego, Marshmallow, ManyPets and Tractable have even gone on to achieve unicorn status – businesses which are worth a billion dollars.
The list below highlights some up-and-coming insurtech startups which are a bit younger than some of those unicorns stated above but which are likely to continue making waves in 2024.
What is insurtech?
Insurtech is the digitisation of the insurance industry and is a sector which is also growing rapidly.
There are different types of insurtech company. There are direct insurers, who will offer predominantly more competitive and flexible premiums in competition to more traditional lenders, marketplaces for both consumers and brokers – such as Stubben Edge, owners of Growth Business – and apps to manage existing premiums.
10 hottest insurtech startups in the UK
#1 – Marshmallow
The oldest startup on this list having been founded in 2017 and a UK unicorn, Marshmallow is still exploding in growth. The startup gives newcomers to the UK a cheaper deal on their car insurance and was listed in the Financial Times as the UK’s second fastest growing company in 2023.
#2 – Laka
Laka has been around since 2017 and is insurance for cyclists. A self-proclaimed ‘collective’, Laka’s Pro offering covers theft, vandalism, damage (including from races) and third-party loss. The young start-up has raised $31 million in total and counts Porsche, Local Globe and 1818 Venture Capital among its backers.
#3 – Ben
A global employee platform that brings all benefits together in one place – including insurance. Its offerings include dental cover, critical illness, income protection and sickness insurance. The start-up has raised $19 million (£14.9 million) from investors in total, including a recent $16 million (£12.6 million) Series A round.
#4 – Loadsure
Loadsure is a freight insurance platform that allows retail brokers to offer single shipment cover in 40 seconds or less. It uses AI to stabilise premiums instead of offering extreme high and lows associated with unpredictability over time. The startup was founded in 2018 and received $11 million (£8.64 million) in Series A funding in 2022.
#5 – BirdsEyeView
BirdsEyeView uses climate analytics technology to calculate the risk from global climate and natural disaster exposure. The startup has access to research level weather analytics through its partnership with the European Space Agency and when a disaster does occur, can make an immediate payout to help build financial resilience to such events. With a year of record-breaking global temperatures, wildfires and earthquakes, the company is one to watch in 2024.
#6 – Collective Benefits
Collective Benefits is a platform that offers benefits to independent workers. Although the startup doesn’t define itself as an insurance company, it does offer benefits such as time off work pay and public liability insurance in its suite of products designed to protect independent workers’ physical and mental health impacting their finances.
#7 – Diesta
Diesta in its own words ‘automates reconciliation and distribution of insurance payments’. The flow of money in insurance can be long and slow – mainly because of manual operations, it says. Diesta uses tech and partnerships to speed up the process, and ensure customers get their hands on payouts fast. The startup was founded in 2022 and raised £1.5m in funding in November 2023.
#8 – Eleos
One of the smallest and youngest startups on this list, having only been founded in 2023, Eleos has secured $750,000 (£615,200) in pre-seed funding to date. The life insurance company pays out when work stops because of injury or illness. Extra benefits available include gym discount, remote GP and life cover.
#9 – Intelligent AI
Digital twin technology has become a bit of a buzzword over the last year or so, and that is exactly what Intelligent AI excel at. Founded in 2020 and located in Exeter, the start-up digitises commercial property portfolios and displays the risks a location offers. In 2021, it raised £400,000 in pre-seed funding.
#10 – Lukango
Lukango is insurance for small businesses. The startup was founded in 2021 and offers products including employers’ liability, D&O and public liability. Its aim is to offer simple insurance under simple terms. The company raised £275,000 in October 2022 and then an undisclosed amount a month later.
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