18 Nov 2022
The Development Bank of Wales has led a pre-seed equity investment into a Cardiff-based car insurance firm as part of a funding round.
Cardiff-based Driverly provides a subscription-based car insurance service, using proprietary technology.
The service tracks users’ driving, with new subscribers downloading the Driverly app and taking an initial test drive to provide data on their driving habits. It then offers users a price for their insurance based on the app's assessment of their driving, with the subscription price locked in for the first three months.
The Development Bank invested £250,000 in equity investment in the company during a £525,000 pre-seed investment round, joined by serial entrepreneur Manuel Santiago as an angel investor, and Duncan Russell, former chief financial officer at Admiral Financial Services.
Driverly continues to monitor the customers’ driving behaviour throughout their policy term, and adjusts prices based on this behaviour and market conditions.
As well as basing costs directly on customers’ driving, Driverly also rewards good drivers with digital "acorns" as part of its rewards programme, which they can convert into vouchers or discounts.
The service has already proven especially popular with younger or new drivers, who normally face much higher car insurance costs than other age groups.
Armin Kia, co-founder and chief executive of Driverly and former head of business planning and development at Admiral Financial Services, Admiral Group, said: "Car insurance is a cost which all drivers have to face, but our approach to insurance gives drivers – particularly new or younger drivers – the flexibility they need as their living costs have increased everywhere else. Our monthly policy affords these customers flexibility, with the guarantee of zero fees.
"We look forward to getting our app and our service to more and more users, and are very grateful for the Development Bank's support."
Jack Christopher, assistant investment executive at the Development Bank, added: "We're impressed with Driverly’s disruptive approach to car insurance. Their behaviour and performance-centric approach is disrupting the normal top-down method, which dictates how much drivers should pay based on factors like demographics or location."
Go here for full article.