Having a clear vision of the future is vital for any business. But it’s essential for insurers, whose success is measured in how accurately they can assess risks and price policies. That means keeping a finger on the pulse of the ever-changing insurance market and ensuring their pricing models are up to date or at least in need of a revamp.
London-based insurance software startup Hyperexponential is on a mission to do just that. It recently announced an oversubscribed $18 million funding round, a sign of the growing demand for its product. The company provides insurance companies with mathematical modeling software, allowing them to price policies based on a wide range of data. Its clients include Aviva and Ageis London.
Insurance is a very data-driven industry, and the ability to quickly evaluate large amounts of data is critical to ensuring that pricing is current. However, much of this work has traditionally been done manually, resulting in high costs and long lead times for new products. Hyperexponential’s software aims to reduce this time and cost and improve accuracy.
The company’s flagship product is Renew, a SaaS platform that helps actuaries and other data scientists build and deploy insurance modeling and analytics models. It has been designed with the needs of insurance companies and is simple to use so that non-technical users can use it. The platform allows users to make better data-driven decisions faster and with less effort than ever before, according to he’s CEO Amrit Santhirasenan.
Renew is aimed at both traditional insurers and startup insurtechs. Several customers have already deployed it in the UK, where it was first launched. It has also been tested in the UK’s regulatory sandbox, which supports firms at earlier stages of development and can offer waivers or modifications to regulations.
This is the latest in a series of investments by Battery Ventures in the UK-based startup, which has previously invested in identity verification firm Onfido and developer-friendly finance software provider Sequence. Its other European investments include the events startup Hopin, delivery service Dispatch, the social network Polywork and the nonfungible sneakers brand RTFKT. It has also been active in the US, having invested in several consumer-tech startups such as Airbnb and Instagram.