Insurtech is a term that barely existed five years ago. It is used to describe the use of technology to disrupt the insurance industry. Because the global market is expected to reach $60 billion by 2028, companies operating in this space are attracting a lot of investor attention.
One such company is Marshmallow, a Black owned insurtech startup that recently reached a valuation of over $1.25 billion, becoming the newest and one of only two Black owned billion dollar (pound) startups in the UK.
The valuation came after an $85 million funding round, bringing the total amount raised by the company in the last year to more than $100 million.
Founded in 2017, by Oliver Kent-Braham, his twin brother Alexander Kent-Braham, and David Goate, the company aims to modernize the insurance industry by using data to provide more affordable auto insurance to customers who fall outside the typical “good risk” profile. These often include immigrants, expats, and people traveling within the UK.
Marshmallow has expanded its staff by more than 200% in the past year to around 170 people, and also plans to use its funding to hire 400 more over the next two years and to expand overseas and into other types of insurance beyond the auto segment.
“Customers are voting with their feet — and they clearly want a modern insurance offering,” Oliver Kent-Braham, co-founder and chief executive of Marshmallow, said.