The news: The UK-based auto insurtech has quadrupled its valuation in less than a year to $1.25 billion, and it will use the funding to expand across Europe and develop new products, per TechCrunch.
What’s its appeal? Its data-driven and flexible offering has boosted sales—it recently surpassed 100,000 policies sold.
Trendspotting: UK insurtech unicorn club is growing thanks to changing driver behavior and expectations.
This is the third insurtech to surpass a $1 billion valuation in the UK this year, following Zego and Tractable. And they all focus on car insurance, highlighting the pandemic’s long-lasting impact on the industry’s digital transformation.
Chartered Insurance Institute argues that “if people are using their vehicles less often, car share or use public transport, this will ultimately have an impact on what customers want from their insurance products.” That increases demand for insurtechs that offer flexibility, like Mashmallow’s fee-free policy changes or Tractable’s digital vehicle damage assessments.
Go deeper: Click here for our take on how the UK became a tech unicorn hub.