First dedicated insurance technology venture capital fund launched
LONDON, November, 9th, 2016 - With $3bn USD of investment being made last year in insurance technology1 and a proliferation of startups that currently number over 6502 , the insurance industry has been suddenly compelled to take notice of the FinTech sub-sector known as InsurTech. Questions on how to respond to this potential disruption have started to appear on boardroom agendas of insurance companies across the world.
The best response, according to the founders of insurance-focused venture capital firm, InsurTech Venture Partners, is to pool like-minded insurance companies in a single vehicle directed towards investing in leading InsurTech startups globally. In the fast moving world of technology, such an approach would be unique and the first structure of its kind in the insurance industry.
“The fund has been specifically designed and structured for insurance companies and we are only accepting insurers as investors.” said Damian Arnold. Arnold was most recently Chief Operating Officer International of insurer, Direct Line, Head of Capital & Investments at RBS Insurance and works with a number of venture-backed businesses as an Operating Partner.
Although InsurTech Venture Partners is headquartered in London, the insurance centre of the world, it has a remit to seek investment in leading InsurTech startups worldwide with a focus on the main FinTech centres of Silicon Valley, New York and London.
“The primary purpose of the fund is to enhance defensibility and add innovation to the business models of our limited partners. It effectively addresses the very relevant threat of FinTech faced by an insurer through a strategic investment vehicle. ”said Nabil Meralli. The Oxford and Columbia educated Canadian has been a three-time technology entrepreneur with a successful exit, a former executive at Goldman Sachs and recently Chief Investment Officer of a FinTech ecosystem in Silicon Valley.
The fund will pursue strategic integration between its portfolio investments and its insurer investor base, with investors in the fund having an ability to leverage the products and technologies within invested startups to further their own business. An active process is in place to identify areas where invested startups can specifically enhance the client experience, product offering and revenue model of each limited partner.
“Collaboration between our insurance limited partners is central to the investment vehicle with each of our investors having a place on the Advisory Board of the fund.” Said Erik Vynckier. “It is for this reason we have kept the investor base concentrated with a high minimum investment.” The US and UK-educated Belgian is a PHD, computer programmer, former investment and risk executive at insurer, Standard Life, and former Chief Investment Officer of the insurance business at Alliance Bernstein.
The three partners share extensive experience in the insurance sector, as both operators and investors, but also bring deep relationships within the venture capital community and FinTech startup ecosystem. The investment philosophy is built on having specialized expertise in the insurance industry but also understanding the nuances of technology and entrepreneurship. It is these traits that InsurTech Venture Partners feel are the keys to successfully navigating such a dynamic environment.
About InsurTech Venture Partners
InsurTech Venture Partners is a venture capital firm developed and designed for insurance companies that is focused on investing in the confluence of insurance and technology. For further inquiries please contact email@example.com or consult the website, www.insurtechventure.com.