Superscript, an insurance broker and tech platform targeting high-growth tech firms, has raised over 50 million dollars in a Series B round of funding.
There are two core insurance businesses: an online-only self-service platform that is available to U.K. customers and an advised broking service called SuperscriptQ. This is targeted at tech businesses with complex risks that are more difficult to cover such as medical malpractice or professional indemnity.
The insurance tech industry has been hit hard by the global economic downturn, with the likes of Policygenius and Next Insurance all cutting back their workforce over the past year.
There are signs that the insurtech realm is still going strong. Germany's Wefox raised $400 million last year at a valuation of $4.5 billion, while Ohio's Branch raised 147 million dollars last year. Superscript is going to remind the world that insurtech may be doing well after all.
Why do some people float while others don't?
"Insurance has a more complex value chain than most tech businesses in that you need to focus on both your acquisition strategy as well as the going performance of the policies that you're selling." Fast-growth in customer numbers is usually seen as a good thing, but if the underwriting is not right then claims will start to compound overtime. If you carry long-term debts, you might not see the true results of the business for a long time.
Ben Rose is the chief officer of Superscript.
A number of well-known names from the insurance world are part of Superscript. Shearer thinks that Superscript is poised to flourish as it looks to scale over the long-term. It is important to provide coverage for the types of risks that are specific to the business.
Many investors have focused on acquisition in the past. With the hindsight of more mature insurtechs and a number of IPO experiences, we have seen investors shift their focus towards the strength of the company. From the beginning, Superscript has focused on sustainable growth and quality. We have a lot of tech and data capabilities that allow us to give a highly personalized user experience.
Superscript says it uses proprietary machine learning technology to set itself apart and that it guides would-be customers towards the correct channels. It uses machine learning models to price its risks more accurately through crunching a range of data points.
Shearer said that other parts of the tech looked at data collected about the insurance market to assess the likelihood of where risks are likely to be accepted by insurers and carriers. It drives operational efficiency for both our process and the insurers.
The company raised over twenty million dollars in two rounds of funding. With another $54 million in the bank, the company plans to bolster its broking capabilities and invest in its machine learning tooling.
Superscript wants to become a global player and is limited to the European market. Some of it's clients in North America, Australasia, and the Middle East need access to the European insurance markets.
BHL UK led the Series B round of funding for Superscript.