Virtual insurer City Jungle doubles investment with £16.5m elevate | Industry Information

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A British virtual insurer which competes with the likes of Direct Line Crew has secured backing from the sector’s greatest IKEA franchise as a part of a £16.5m investment spherical.

Sky Information understands that City Jungle, which was once introduced by way of Jimmy Williams and Greg Smyth in 2017, will announce this week that it has doubled the volume it has raised from traders all the way through its four-and-a-half 12 months lifestyles.

The Sequence A spherical is being led by way of Intact Ventures, a North American project investor which has subsidized a string of insurtech firms, and Ingka Crew, which controls loads of IKEA shops globally.

City Jungle positions itself as a “honest” supplier of insurance coverage quilt, with its pricing additionally key to its providing at a time of broader cost-of-living demanding situations dealing with British families.

London-based City Jungle has accrued 100,000 house insurance coverage shoppers since its release, and claims to have an industry-leading report at detecting fraud which is helping it to cut back the price of quilt.

The corporate’s present traders come with Rob Devey, the previous boss of Prudential UK, and Eka Ventures, a fund specialising in investments which goal a favorable societal have an effect on.

Mr Williams stated the brand new investment can be used to focus on a doubling of City Jungle’s buyer base by way of the tip of the 12 months.

Kind of 100 jobs may also be created as a part of its enlargement plans.

“We’re development a contemporary insurance coverage supplier from scratch, leveraging the newest generation, and the use of that to create merchandise with honest, clear costs and simple to know phrases – all while making insurance coverage easy, fast and reasonably priced,” he stated.

“Fraud is a large drawback in our {industry}, and it drives up the fee for everybody else.

“The way in which we use generation offers us a essential edge by way of with the ability to display screen out fraudsters, and assist authentic shoppers get a significantly better deal, which is especially vital this present day.

“It additionally is helping us with our function of monetary inclusion – with the ability to inform fraudsters and authentic shoppers aside is helping us have a lot upper eligibility than our friends.”

Krister Mattsson, managing director of Ingka Investments, stated it had determined to again City Jungle as a result of its “cutting edge resolution with the possible to enrich and disrupt the present insurance coverage marketplace and make insurance coverage reasonably priced for lots of extra other folks”.

The fundraising will likely be introduced in opposition to an an increasing number of tricky backdrop for earlier-stage firms, with the rout in valuations of publicly traded generation shares additionally feeding via to non-public markets.

Many tech firms are responding by way of curbing enlargement plans and slashing their workforces within the expectation that elevating capital is also tricky for a chronic length.

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