The InsurTech Gateway has launched as the first insurtech accelerator authorised as an insurance broker by the UK’s Financial Conduct Authority (FCA).
Removing hurdles, such as insurance and funding barriers, InsurTech Gateway streamlines and accelerates the process of building an insurtech startup.
InsurTech Gateway is a co-investment from Hambro Perks and Robert Lumley from the Lumley insurance family, and is supported by a panel of reinsurers and angel investors from the insurance sector.
For companies and entrepreneurs, InsurTech Gateway will reduce the time needed to get to proof of concept from two years to 3-6 months, and costs by 75%.
In addition to securing the FCA to create its own innovative regulatory model, InsurTech Gateway has arranged underwriting capability from Aspen. A network of other insurers who will support the primary reinsurer as companies achieve growth stage, will also be in place.
InsurTech Gateway provides startups with the entire environment they need for proving their idea. In addition to insurance and funding, InsurTech Gateway provides full compliance, back-end technical platforms and GDPR procedures. It also has ready-made partnership agreements with key capital providers, distributors and infrastructure, such as IT and payment platforms.
Three portfolio companies are already in place: InMyBag, specialist insurance and data recovery for freelancers; By-Miles, telematics-based car insurance for low mileage drivers; and Floodflash, an IoT flood sensor enabling instant settlement flood insurance; with five more expected to have joined by the end of 2018.
Robert Lumley, co-founder of InsurTech Gateway and an insurance entrepreneur, said: “The three main hurdles insurtech startups face are regulatory and capacity barriers, the funding gap and big insurers’ slow behaviour. That means there is little innovation happening in the sector because it is too difficult to get past the roadblocks. The InsurTech Gateway will change all of that.”
Rupert Hambro, chairman of Hambro Perks, former director at Sedgwick and chairman at Fenchurch, said: “InsurTech Gateway will disrupt those who believe their traditional businesses are impervious to change. One of the many ways we will do that is by supporting new ideas and innovative ways to improve the insurance products currently available to consumers.”