Buying life insurance, income protection, and critical illness cover could be complicated and exhausting. However, the life insurance industry has witnessed a surge in demand since the pandemic hit, with over eight million 22-44 year-olds having considered protection in the last three months. In this regard, a London-based insurtech startup, Anorak, has raised £5M (approx €5.8M) in a fresh round of funding.
The round was led by Outward VC, with Triple Point Ventures and existing investor Kamet Ventures also participating.
Besides, a list of angel investors active in the European insurtech ecosystem also invested in this round. They include Nic Kohler (former CEO of Hollard), Paul Evans (Chairman of Allianz PLC and board member of Bupa and SwissRE Europe), Charlie Delingpole (CEO and founder of ComplyAdvantage); and, Will Neale (Founder of Fonix and Grabyo).
How will the funds be utilised?
Anorak claims that it is currently the only platform to provide an omnichannel experience while allowing users to connect to expert advisers if they wish to. Hence, the proceeds will be used to accelerate the expansion of Anorak’s distribution and partners network, as well as invest in its automated advice platform.
David Vanek, CEO & co-founder of Anorak says, “Our mission is to help millions protect their financial future. We are passionate about advice, and we believe that everyone should have access to it. We can ensure that each person gets the protection that is right for them.”
Speaking on the development, Vanek further adds, “The last 12 months has left many of us in a state of financial uncertainty, and many are actively searching for fair and transparent advice on insurance. Our platform provides exactly that, and we are looking forward to continuing to work with our partners to bring this education to the masses.”
An independent broker to buy cover online
According to the press release, 53 per cent of people still have no protection in the UK, and 54 per cent don’t understand how to fully protect themselves or how much they should spend. And this is where Anorak looks to make the difference.
Founded in 2017 by David Vanek and Vincent Durnez, Anorak is on a mission to build the world’s smartest life insurance companion. The company’s founders realised that while life insurance was integral to everyone’s lives, it was far too complex for most to understand, and therefore, acquire.
The Anorak platform helps them understand their financial liabilities, and offers online tailored advice to make sure they get the right cover in place. Besides, since the company is independent, it means that it works for you and not the insurer.
Sanchit Dhote, Investment Manager at Outward VC, says, “The protection gap is only getting wider,and Anorak is already a leading player enabling the shift towards embedded insurance.”
Anorak’s technology can be integrated into existing software so that people can access life insurance options while using everyday services such as digital banks, online mortgage brokers, investment platforms, digital money management service, and challenger banks. The users can get life insurance advice from Starling Bank, Snoop, Clearscore, Canopy, Billbuddy, Vivup and OpenMoney.
According to Anorak, it will be focusing on developing its partner network, working with distribution platforms and brands that are not traditionally selling insurance products.