Superscript, an insurance tech platform for SMEs and “high-growth” tech firms, has raised £45 million ($54 million) in a Series B round of funding.
Founded in London in 2015, Superscript provides two core insurance services: an online platform for UK customers (SMEs, sole traders and landlords) and a broking service called SuperscriptQ for tech businesses with complex risks (e.g. medical malpractice or professional indemnity). Customers include fintech unicorn Paddle based in London.
The underwriting factor
The insurance tech sector has felt the impacts of global economic downturns. Companies like Policygenius and Next Insurance reduced headcount, while publicly-traded firms Lemonade, Hippo, and Root experienced sharp share price drops.
Despite some signs of a slowing insurtech sector, Germany’s Wefox raised $400 million at a $4.5 billion valuation in 2020, while Ohio-based Branch reached unicorn status following their $147 million raise. These successes show that Insurtech is still very much alive and kicking – the latest example being Superscript’s recent reminder to the world that Insurtech remains strong.
What separates successful insurtech from the unsuccessful? Why do some soar while others sink?
Cameron Shearer, cofounder and CEO of Superscript, explained to TechGround that insurance has a complex value chain: You must focus on both acquisition strategy and policy performance. Rapid customer growth is usually seen as desirable, yet if underwriting is not done correctly losses will add up over time—especially if your business involves long-term liabilities in which you won’t see ‘true’ results for years.
are excited to announce the launch of their new company.
Ben Rose and Cameron Shearer, cofounders of Superscript, are thrilled to unveil their new venture! Ben is Chief Underwriting Officer and Cameron is CEO.
Superscript’s underwriting partners, including AXA, Beazley At Lloyd’s, RSA and MS Amlin, are well-known names in the insurance world. This multi-carrier approach allows Superscript to provide bespoke coverage for SMEs’ specific risks and is why Shearer believes it is well-positioned to scale over the long term.
Many investors once followed tech-investment models, emphasising acquisition. Now, with more mature insurtechs and several IPOs under their belts, the focus has shifted to strong underwriting differentiation. Superscript has always prioritised sustainable growth and quality underwriting for better loss ratios. Our sophisticated technology and data capabilities enable us to deliver personalised user experiences as well as tailored coverage decisions.
Superscript leverages proprietary machine learning technology to simplify the acquisition and onboarding process in its self-serve product, as well as pricing risks more accurately with big data insights. The company uses sophisticated models to crunch a range of data points for maximum accuracy.
Shearer noted that our tech examines market data to determine which risks insurers are likely to accept and what information they need for underwriting, resulting in efficiency gains for both us and the carriers.
The company has so far raised $24.4 million, with a $20 million tranche split across two rounds this year. They have now added another $54 million to their coffers and plan to use it for underwriting and broking improvements as well as investing in machine learning technology.
Superscript is aiming to become a global player, already having clients in North America, Australasia, and the Middle East who require access to European insurance markets.
Superscript received Series B funding led by BHL UK (owner of Comparethemarket), with The Hartford and Concentric participating.
