Envelop Risk, the UK cyber underwriting and risk analytics business, announced a Series A investment of approximately $6 million.
The funding round was led by artificial intelligence specialist investor Alpha Intelligence Capital (AIC), with additional support from existing investors including MS Amlin and Dymon Asia Ventures.
The financing will be used to expand Envelop Risk’s investment in proprietary machine-learning and data-driven underwriting activity in London and Bermuda, fueling growth into new global markets.
Envelop Risk’s underwriting solutions are focused on the global cyber reinsurance market, using artificial intelligence and data analytics. Although the company is based in Bristol, England, it operates as an managing general agent in Bermuda, which gets its capacity from MS Amlin and other undislosed insurers. (MS Amlin also owns a minority stake in the firm).
“We are thrilled to have received the support of AIC, a recognized leader in AI investment, and are pleased to become their first major insurtech investment,” said Envelop Risk CEO Jonathan Spry.
“The current COVID crisis is posing important questions for the insurance industry, and we believe cyber re/insurance will benefit from demand for risk mitigation, allowing Envelop to become the partner of choice for insurers as growth opportunities and emerging risk business ensue in the new normal,” Spry continued.
Envelop predicted that companies of all sizes will eventually choose to protect themselves against increased risk via robust cyber insurance policies. “[W]e would like to move onto our next chapter and partner with underwriters globally to reach more companies at risk of cyber breaches, cyber attacks and other emerging areas of supply-chain complexity,” said Spry.
“We at AIC have been impressed with the Envelop team’s ability to combine advanced algorithmic science with deep cyber-security domain expertise,” said Antoine Blondeau, co-founder and managing partner of Alpha Intelligence Capital.
“The resulting ‘engine’ is foundational not just to cyber risk insurance but also to the broader specialty and emerging risk insurance ecosystem,” he added. “We look forward to supporting Envelop as it further expands its product and commercial reach globally.”
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