Pikl

Idea

Introduction

We believe that the insurance industry is not adequately equipped to service participants in the sharing economy, which is forecast to grow to $335bn by 2025. Many insurers do not cover sharing of assets such as homes on Airbnb and cars via Hiyacar and many customers are unaware that they may not be properly insured.

Pikl is on a mission to make sure that customers participating in the sharing economy can access insurance products which meet their needs. We’re doing this by working with the insurance market to provide technology solutions that change customer buying journeys so customers in the sharing economy can be identified and provided with the right insurance solutions developed by Pikl.

As well as providing insurance protection and solving regulatory issues, Pikl’s smart technology platform helps to reduce risk and prevent claims. We designed Pikl’s insurance products to be flexible, so our customers only pay for the insurance they need, when they need it.

Substantial accomplishments to date

2018:
· Launched MVP Airbnb insurance product in pilot.
· Insured over 100k Home Sharing nights.
· Partnership agreed with A-rated insurance providers.

2019:
· Full launch of Airbnb insurance product suite sold Direct.
· Over 250k Airbnb nights insured.
· Launched first B2B2C partnership with Bollington’s group.
· Raised £2.5m seed round led by Sir Peter Wood (founder of Direct Line and Esure)).
· Invested in team (increasing in size from 5 to 15) and beginning development of full stack technology infrastructure.
· Won Insurance Time’s Insurance Start Up of the year (B2C) award.
· Won Digital Broker of the year at the UK Broker Awards.

2020:
· Over 280% growth in revenue from 2019*.
· Just under 400k Airbnb nights insured.
· Launched first B2B partnership with Airbnb Property manager Guest Ready
· Launched full MGA (underwriting company) with A-rated backing.
· Selected for Tech Nation's Fintech 3.0 top emerging fintechs in 2020.
· Raised £2.5m seed round from existing investors and new angel investors including ex-CEOs of RAC, Aviva, Ageas, Hertz, Bluefin, Towergate, Gallagher, and Swinton.

2021:
· 300% growth in revenue from 2020*.
· Launched Partnerships with CoCompare, Esure and Sheila’s Wheels.
· Launched first marketing campaigns on Facebook.
· Over 1m nights insured.
· Average Customer Retention Rate of 72%.
· Rated 5* excellent on Trustpilot (Overall 4.8*).
· Ranked #13 in the list of Top 50 European Insurtechs.
· Continued investment in team (increasing in size from 15 to 25) and technology, launching our Pikl tech hub.

*Based on unaudited management accounts.

Monetisation strategy

We make money in 5 different ways through our multiple distribution channels (B2C, B2B and B2B2C):

1. Insurance commission and profits from Pikl underwritten products
2. Commission from the sale of products brokered from other insurers (like Home Insurance)
3. Commission from add-on sales (like the sale of legal expenses insurance)
4. Instalment income from the credit loans for monthly payers
5. Income from fees such as for amendments and cancellations

The global sharing economy is set to be worth $335bn by 2025. We are seeing an increasing trend towards professionalisation and regulation which we believe will mean more formal insurance products in this sector will become the norm.

For our next step, we plan to enter into the similarly fast-growing shared mobility market, which is expected to have YOY CAGR of 8.5%, and is expected to be worth $777bn by 2030. We plan to add a new revenue line through commission and profits from the sale of these insurance products.

Use of proceeds

The majority of funds will be spent on people since it is they who develop our technology, develop and manage our insurance products and provide excellent service to our customers.

The breakdown of how the funds will be spent is as follows:

- 56% Team:

We will significantly expand our team across two areas:

1. Engineering to enable launches with new partners, continued development of guest verification services and the launch of our shared mobility products.
2. Business Development to support partner management and sales capacity

- 24% Sales and Marketing:

This includes further branding initiatives, paid media, events and other marketing assets.

- 20% Technology, Insurance & Legal:

This includes hardware, software and technology support services, as well as a variety of legal, regulatory and investment costs.