It seems almost every week there’s another twenty million or so being put into InsurTech projects, which shows the overall strength of the insurance industry sector, and its rapid transformation. InsurTech start-up Anorak has secured £4m of seed funding from Kamet Ventures, a €100m incubator funded by insurance giant AXA.
Anorak is using artificial intelligence to make life insurance more accessible to millions of families across the UK. According to industry research, around two thirds of UK adults have no life insurance cover at all, so there is – potentially – a huge market out there.
Anorak’s product will collect data about a person’s family, home, income and finance to analyse how much cover they need, for how long and why. The company also say that their product can be integrated with Open Banking, so that at the right time – often when a major financial decision is being made – the consumer can be pointed into the direction of reviewing their life cover, or lack of it.
Anorak then scans and rates policy documents from all the major insurers and finds the best policy to suit the person’s unique circumstances.
David Vanek, co-founder and CEO, said: “Current distribution channels have failed to make life insurance accessible. We are remodelling the entire experience so it’s easy to make the right decision.
“Using data science and software engineering, we have digitised the entire journey, including policy rating and matching, ‘translating’ insurance jargon into plain English, to empower people to make the right choices about their life insurance. We see ourselves as a smart data company that delivers independent insurance advice, founded on trust and transparency.”
Stephane Guinet, founder of Kamet Ventures, added: “Anorak is one-of-a-kind, bringing unique innovation to the slow-moving life insurance sector.
Insurance Edge Comment;
Life insurance is a sector ready for disruption. The old methods of selling face-to-face through a High Street brokerage, or in the home, are pretty much over. The companies that offer flexible, pay-as-you-go cover, which can be customised by the consumer as their life changes, is the way ahead.