Wrisk

Idea

The campaign is now closed, but we are still building the future of insurance! Sign up at www.wrisk.co to get early access, or email community@wrisk.co to get involved in developing our proposition.

Introduction

Insurance is a great idea... but it hasn’t kept pace with society. We’re giving it a long overdue digital upgrade.

Wrisk is insurance made so simple it's almost unrecognisable. Buy, update and claim anytime with immediate effect. Manage different types of insurance seamlessly through a single app. Pay flexibly through your mobile.

And that’s just the beginning.

Wrisk is about more than just buying insurance – it’s about managing and understanding your risk. Developed using advanced data science and actuarial techniques, our unique Wrisk Score is like a credit score for personal risk, enabling better, more transparent pricing. By gathering data from connected tech, we stay accurate without being annoying. By giving customers control of what they share, we can be clever without being creepy.

The possibilities are endless. The benefits to customers are transformational. The opportunity is huge.

Once Wrisk launches in 2018, you'll find it hard to think of your insurance any other way.

Intended impact

Currently, 61% of people who rent don’t buy insurance. 31% of millennials who travel never buy travel cover. 30% of millennials who drive are not the main policy holder. A whole generation seems to distrust insurance, but being uninsured leaves them vulnerable in emergencies.

It doesn’t have to be this way. Through challenger banks, mobile payments and budgeting apps, people are more ready to engage with financial services than ever – on their terms. Make it easy and accessible. Strive to be ethical and fair. Build and maintain an open, responsive dialogue. Focus on people, not policies.

By engaging people through their phones and providing holistic cover, Wrisk will make it as easy as possible for as many as possible to get the insurance they need, meaning fewer end up in long term hardship when the worst happens. Beyond this, prioritising convenience and a new approach to transparency has the potential to engage brand new customers – kickstarting a new mass market for insurance.

Substantial accomplishments to date

We may work and act like a tech startup, but we know insurance is a serious, complex and heavily regulated business. Wrisk is made up of an experienced and passionate team of insurance and technology professionals. We’re partnered with industry heavyweights Munich Re and Hiscox, and have commercial agreements in place with the likes of BMW. And we have £3M already invested, with backers including a VC lead, high profile angels and insurer investors.

Please note that FCA authorisation is required for Wrisk to offer its services and the app will not be launched until FCA authorisation is received.

Monetisation strategy

Wrisk will be an agency, acting on behalf of major insurance companies such as Munich Re and Hiscox, respected incumbents known to support innovation in their partners. The agency model, known as a Managing General Agent ('MGA'), is one that’s widely used in the insurance sector.

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

1. Commission per transaction, paid by its insurer partners.
2. Profit commission, calculated annually and paid to Wrisk by its insurer partners.
3. Licence fees for the use of Wrisk in those territories where an MGA model is not appropriate.

Beyond these traditional sources of revenue, our roadmap also includes exploring additional derivative sources, such as referral fees in respect to non-insurance products, and possibly even licensing the Wrisk Score as a proxy rating tool for insurers in countries where traditional rating data is more scarce.

Use of proceeds

Our current expense breakdown is approximately:
* 70% salaries, the bulk of which are for technology staff.
* 18% advisors (actuaries, lawyers, accountants).
* 12% rent.

Raising funds through this round will give us sufficient headroom for expenditure ahead of a likely Series A round in mid-2018.

The funds will allow the team to focus on other lines of business and start working with partners on specialist products, such as Hiscox (business insurance) and BMW (motor). We will start to pursue our omni-channel strategy by beginning to build out other delivery channels (web, Android, etc.).

We intend to grow from 12 to ~25 people to support this development, with recruitment across a variety of cross-functional roles (engineering, insurance, marketing and support). An increased team footprint means an increase in rent for office space as well as supporting functions (HR, Finance etc). Increasing customer volumes mean we will need to scale some of our SAAS and cloud-based hosting costs.

Please note that the company has 2 convertible loans outstanding.
• The first is a £500k convertible loan, the details of which are as follows:
- The loan accrues 5% interest per annum.
- The total amount including accrued interest will convert to ordinary shares at a 20% discount to the pre-money valuation set by a fundraise of at least £1m at a valuation greater than £9m. This fundraise will not trigger conversion.
- Long Stop Date: 31st December 2019.
- If the convertible is not triggered before the Long Stop Date the investor can decide to either convert the convertible at a 20% discount to the valuation set by an independent valuation advisory firm, or elect to redeem the loan at the nominal amount of the loan outstanding.

• The second is a £192,000 convertible loan, the details of which are as follows:
- The loan is interest free.
- After the 1st January 2019, the Company can request for the loan to be fully paid up or converted to Ordinary shares at the subscription price of the next equity fundraise.

The conversion of these loans will lead to investor dilution.

Please also note that certain investors in the company have A Preference Shares. The A Preference Holders can elect to receive a preferential return on a distribution of capital up to the value of their investment or can participate in the distribution of capital on a pro rata basis (a non-participating preference). The total invested in the A Preference Shares is £1,650,000.