Wrisk

Idea

Introduction

Wrisk is a digital-first insurance business that works with leading automotive brands to shape the future of their customers’ mobility and insurance protection experiences. We already have established B2B2C partnerships with the likes of BMW, MINI, the RAC and Heycar.

Modern cars are now computers on wheels. The push towards electrification, digital path to purchase and new ownership models are driving transformational change within the global automotive sector.

Our insurance know-how combined with the capabilities of our future-focused technology platform sets us up to innovate and meet the rapidly changing needs of this market.

Having successfully emerged from a challenging period where Covid effectively stalled the automotive sector, we now have an increasing pipeline of UK opportunities that are competing for our attention. In addition we are seeing interest from partners in other geographies (e.g. USA) who see the global potential of the Wrisk platform.

Substantial accomplishments to date

Wrisk is low cost-to-serve at scale and pushes to define a new digital standard for insurance. We embed products at point-of-sale and create experiences that work seamlessly within partner brand digital ecosystems (B2B2C).

***Exclusive partner update***

We are delighted to announce the partnership between heycar and Wrisk which effectively brings digital path-to-purchase and insurance together for the used car market.

Wrisk on Seedrs 2019:

— A B2C native app focused on contents insurance. Sole provider of BMW/MINI car insurance in the UK and achieved our first £1M of gross written premium from 2500+ customers*.

Wrisk on Seedrs 2022:

— A B2B2C partnership model focused on the mobility/automotive sector.

— Reduced partner concentration with three now live on the platform and a further two in the contracting phase.

— Completed Series A

— Tracking £8.8M annualised GWP across 20k+ customers which we aim to grow over this year as new partnerships gain traction*

— Healthy pipeline: 65+ opportunities (2 in contracting stage)

— High calibre automotive insurance and commercial development teams with a breadth of experience working with insurers and OEMs.

— Grown product suite by adding EV and Usage-based subscription, short term cover and add-ons. More products in development to further increase share of wallet.

— Signed terms of business with multiple insurers to improve risk selection.

— Set up US entity and signed LOI with a top 3 US auto insurer with plans to expand into that market

*GWP run rate is an annualised figure based upon Q1 2022 actuals. The figures are based on unaudited management accounts.

Monetisation strategy

Wrisk is an agency in the UK – acting on behalf of major insurance companies. The agency model, known as a Managing General Agent ('MGA'), is widely used in the insurance sector.

As with all MGAs, the insurance liabilities remain on the balance sheet of Wrisk’s insurance partners, and as such our own revenue will come from:

— Commission per transaction (15-25%), paid by our insurer partners.

Discussions with OEMs and Insurers to scale Wrisk globally are gathering momentum. We have built the technology that underpins our platform with the aim of making it easily configurable for different markets whilst navigating the regional regulatory environment and localised working practices can be challenging. For this reason, our international model is to offer the Wrisk platform as a managed service working with major insurers who have regional domain experience and pricing expertise.

Our business model framework will be as follows:

— Setup charge
— Annual Licensing fee
— Per Policy monthly charge

Use of proceeds

We are raising an interim funding round to provide sufficient runway as the UK paths towards desired growth for our Series B raise. In addition, we will look to use funds to pursue international growth opportunities (as mentioned, we are working with a number of insurance and brand partners to launch programmes in the US market).

Funds will be proportioned as follows:

— UK business: 90% (of which 75% relates to salaries)

— US & International opportunities: 10%

Should we achieve these milestones, we believe that this will put Wrisk on track to raise a substantial Series B round towards the end of the year.