(Image source: Pexels/Pixabay.)
Brolly, a London-based InsurTech startup offering an artificial intelligence (AI)-based smartphone app for the purchase of personal lines insurance products, has announced that it will be taken over by Direct Line Group under terms that the firms declined to disclose.
Upon completion of the deal, expected to close during the third quarter of 2020, Brolly says it will no longer be offering its current products and services. A Brolly statement says that the combination of the two firms’ capabilities—the technological edge of Brolly integrated with the insurance prowess of Direct Line Group—will permit acceleration of the next generation of insurance products. “Direct Line Group are committed to leading the digital transformation of insurance and the Brolly team are proud and excited to be joining at such a pivotal moment in this journey,” the statement says.
“Since our launch, our belief in the power of simple, personalized and intuitive insurance products has been unwavering. Alongside our new colleagues at Direct Line Group, home to a number of well-known brands including Direct Line and Churchill, we will start work on products that will help shape the future of insurance,” the statement continues. “The reach and expertise present at our new home will help see those products delivered throughout the whole of the U.K.”
Brolly was founded in 2016 by former Aviva underwriter and product manager Phoebe Hugh, and Mykhailo Loginov, a former Skype and Microsoft engineering manager. The company was created to address three core problems, according to a company statement: “chaotic management of existing policies, lack of advice from personal insurance brokers, and difficulty making decisions on the best insurance products to buy.” Brolly said that it tackled these problems by bringing a customer’s entire insurance portfolio into one place via an app.
Giving Customers Value and Simplicity
“We are delighted to announce our plans to acquire Brolly and are looking forward to welcoming Phoebe [Hugh] and her team to the Group,” comments Kerry Chilvers, marketing director, Direct Line Group. “We both want the same thing which is to give customers value and simplicity. We know that we can learn a lot from Phoebe and her team and we are looking forward to channeling their excitement and significant expertise to help us with our ambitious plans.”
Direct Line Insurance Group was launched as a public company in 2012. The entity does business through several subsidiaries including Direct Line and Churchill, and also through Green Flag, a company providing roadside assistance and vehicle recovery services. Direct Line was originally founded in 1985 as the Royal Bank of Scotland Group’s (RBS) insurance division. Its initial public offering was held October 2012.