(Tower of London. Photo credit: Rafa Esteve.)
Bought By Many, a London-based membership organization that identifies gaps in the insurance market and seeks to provide better insurance products, has closed a £15m Series B funding round. The round was led by CommerzVentures, the corporate venture capital arm of Germany’s Commerzbank (Frankfurt), with Marsh (New York) also participating. The company reports follow-on investment from existing Bought By Many backers, including Munich Re/HSB Ventures (Munich), Octopus Ventures (London/New York), and angel investors, such as Evelyn Bourke and Crispin Odey. As part of the round, Paul Morgenthaler of CommerzVentures has joined the company’s board.
Since announcing a £7.5m Series A round in October 2016, Bought By Many has launched a number of insurance products, including its own pet insurance and travel insurance for people with serious medical conditions. The company reports a Net Promoter Score (NPS) of 77 for the year to date, compared to the 2017 pet insurance industry average of 14.
The company has recorded £20m of premium income in the financial year ending 31 March 2018, which it says is double the gross written premium of the previous year, and now has over 500,000 members and 90 employees across sites in London and Haywards Heath in Sussex. John Pearson, Virgin Radio co-founder and former chairman at Shazam, recently joined Bought By Many as chairman to support the senior management team through its growth trajectory.
“Bought By Many is proving it’s possible to create better insurance using data and a focus on customer experience,” comments Steven Mendel, CEO, Bought By Many. “Since we launched our unique pet insurance last year more than 32,000 people have bought a pet policy. We’re growing at speed and this latest funding round will support the development of new insurance products and technology.”
“I was delighted by the response to our fundraising and I look forward to working with CommerzVentures and Marsh,” Mendel adds. “And it is gratifying that so many existing investors continue to believe in our vision and have decided to follow on. I’d like to welcome Paul Morgenthaler to the board, his experience will be an asset as we continue to build the business.”
CommerzVentures sees Bought By Many as a company pushing the boundaries of traditional insurance, according to Paul Morgenthaler, the company’s Senior Investment Manager. “Redefining products and processes entirely from a customer perspective, Bought By Many has built a very fast-growing, enthusiastic membership base. We are thrilled to be part of Bought By Many’s journey, as it replicates its success story in international markets and with new product lines.”
Unique Business Model for Small Commercial, Consumer Segments
John Drzik, President, Global Risk & Digital at Marsh, comments: “Marsh’s digital strategy includes collaborating with insurtech firms that open new distribution channels and create innovative insurance solutions for clients. Bought By Many has a unique business model to serve and grow in the small commercial and consumer segments, and we look forward to working with them.”