The Development Bank of Wales led a pre-seed equity investment in a Welsh auto insurance company during a recently completed funding round.
Cardiff-based Driverly offers a unique, flexible, subscription-based motor insurance service that uses proprietary technology to offer flexible pricing to its customers.
The development bank recently made a £250,000 equity investment in the company during a £525,000 pre-seed investment round involving serial entrepreneur Manuel Santiago as an angel investor and Duncan Russell, former CFO at Admiral Financial Services.
Driverly’s service tracks user driving, with new subscribers downloading the Driverly 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.
Driverly continues to monitor customers’ driving behavior throughout the contract period and adjusts prices based on that behavior and market conditions. There are no additional fees for customers, including cancellation fees.
Driverly not only aligns the costs directly with the driving behavior of the customers, but also rewards good drivers with digital “acorns” as part of its bonus program, which they can convert into vouchers or discounts.
The service has already proved particularly popular with younger or new drivers who typically face much higher car insurance costs than other age groups.
Armin Kia, co-founder and CEO of Driverly and former head of business planning and development at Admiral Financial Services, Admiral Group, said:
“We are very pleased to have had the support of the Development Bank of Wales who will help us advance our technology and enter the car insurance market on a strong footing.
“Car insurance is a cost that all drivers must bear, but our approach to insurance gives drivers – especially new or younger drivers – the flexibility they need as their cost of living has risen everywhere else. Our monthly policy offers these customers flexibility with the guarantee of no fees.
“We look forward to bringing our app and service to more and more users and are very grateful for the development bank’s support.”
Jack Christopher, Assistant Investment Executive at Development Bank said:
“We are impressed by Driverly’s revolutionary approach to auto insurance. Their behavioral and performance-based approach disrupts the normal top-down methodology of dictating how much drivers should pay based on factors like demographics or location.
“Driverly is one of a number of thriving Welsh FinTech companies that we are happy to support with pre-seed investments and we look forward to being a part of their journey.”
For more information on support from the Development Bank of Wales go to www.developmentbank.wales.