Wrisk

Idea

Introduction

We believe insurance is a good thing. But the insurance industry is currently facing a crisis of confidence, while regulators are battling the ongoing issue of transparency. So how is Wrisk different?

Well, it’s simple. Wrisk is designed and built to solve customers’ long-held issues with insurance. Through our app, we’ve made the whole process simple, transparent and personal:

- The Wrisk Score shows the risk factors that impact the price.
- Get quick access to a quote after only six questions.
- Manage different types of insurance seamlessly in the app and pay monthly.

Last summer, we rolled out our contents insurance proposition. In September, we launched our first car insurance service for BMW/MINI as their sole UK motor insurance partner. By the end of February 2019, we have 4,000+ customers and £1.8 million+ in gross written premium.

We’re returning to Seedrs to complete our Series A and we’d be delighted for this community to continue to be part of Wrisk’s journey.

Intended impact

Wrisk aims to change the way people think and feel about insurance. So many people just don’t bother, leaving them vulnerable should the worst happen.

It doesn’t have to be this way. Wrisk has re-engineered the process to engage those who are insured and people who’ve never bothered with insurance.

We’ve started with contents insurance, and will be offering multiple lines.

Customers will be able to manage all their insurance in one place, with a single monthly premium (like Netflix) and never worry about annual renewals again. They can change or cancel anytime, without penalty.

Wrisk is about more than just buying insurance – it’s about managing and understanding 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 bringing everything together in one plan, we’re making insurance so simple, it’s almost unrecognisable.

Substantial accomplishments to date

⚡️Exclusive partner update ⚡️

Fundamental to Wrisk’s model is to extend our distribution via B2B2C partners. As an exclusive update to this community, we're pleased to confirm we have signed an MOU with the RAC to work on the joint development of an innovative motor insurance product using the Wrisk platform.

The RAC is one of the UK's most progressive motoring organisations, providing services for both private and business motorists.

Wrisk also continues to develop our partnership with BMW/MINI, where we are looking into innovative insurance programs designed to increase the number of car buyers securing motor cover.

Additional partnerships launched in the past 6 months:

- Moneybox is a savings app designed for millennials. Wrisk feature within their app with a dual incentive to save on our insurance and a contribution to their Moneybox account.
- Two incentive-driven partner programmes went live for students via specialist service providers UKSUA and Resooma.

A selection of our major achievements in 2018:

1. Wrisk debut in the UK App Store in July achieving solid 5* reviews.
2. Became the sole provider of BMW/MINI car insurance in the UK.
3. Achieved our first £1M of gross written premium from over 2,500 customers.
4. Won a DIA Diamond in Amsterdam for being an insurtech with most strategic impact.
5. Completed the beta of our car product within the app.

Monetisation strategy

Wrisk is an agency in the UK – acting on behalf of major insurance companies such as Munich Re – respected incumbents known to support innovation in their partners. 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:

1. Commission per transaction (10-25%), paid by our insurer partners.
2. Profit commission, calculated annually and paid by our insurer partners.

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

Use of proceeds

Funds will be used to:

Increase share of wallet: Adding new lines of insurance (Car).
Improve accessibility: Build an omnichannel experience (Mobile web app).
Scale adoption: Significantly grow new customers from c700 per month.

To achieve this, Wrisk is focusing on:

1. Partnerships: Working with other startups in fintech and proptech who have existing marketplaces, enabling Wrisk to be surfaced to their customer base.

2. Affinity verticals: Similar to BMW, we’re gaining attention from other auto OEMs, retail brands and telcos, who want to offer insurance. In these cases, Wrisk intends to provide a co-branded experience.

3. Insurers: Some incumbents recognise Wrisk’s technology delights customers and has a lower cost to serve. We’re exploring opportunities with selected partners who could scale our distribution.

Whilst our ambitions are mighty, we do not see a significant increase in headcount to achieve this, aside from variable costs to support customer acquisition and service.

Important information

Wrisk has the following convertible equity and loan notes outstanding, which are expected to convert as part of this funding round. The pre-money valuation presented in this campaign reflects the fully diluted position if all of the convertibles were triggered as at March 31st 2019.

Some of the convertibles may not convert in this round, which would reduce the final fully diluted pre-money valuation of the company. Investors will be updated accordingly at the end of the campaign.

Outstanding convertible interests:

1. Loan Note HNW investor (£192,000)

2. Loan Note QIC (£750,000) accruing interest of 5% per year.
- We have included accrued interest up to March 31st 2019 in the pre-money valuation. Interest accruing through to the end of the fundraise will also convert.

3. Convertible Equity round Seedrs & HNW (£1,500,000)

4. Loan Note HNWs (£1,000,000)