18 Nov 2022
The Development Bank of Wales has invested £250,000 in Cardiff-based Driverly leading a pre-seed investment round of £525,000.
Driverly, which describes itself as an insurance broker on its website, was set up in 2021 to deliver subscription-based flexibly prices car insurance.
It is led by co-founders Armin Kia, the former head of business planning and development at Admiral Financial Services as CEO, chief technology officer Mohammad Alinia and chief data officer Nestor Alonso.
The development bank detailed that Driverly's service tracks users' driving, with new subscribers downloading an 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 investors continued that Driverly monitors customers' driving behaviour throughout their policy term, and adjusts prices based on this behaviour and market conditions.
Kia said: "We're really glad to have been supported by the Development Bank of Wales, which will help us to further develop our technology and enter the car insurance market on a strong footing.
"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."
Jack Christopher, assistant investment executive at the Development Bank of Wales, said: 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.
"Driverly is among a number of thriving Welsh FinTech companies we have been pleased to support with pre-seed investment, and we look forward to being a part of their journey."
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