InsurTech Hyperexponential (hx), which provides mathematical modelling software for the commercial insurance sector, closed an $18m funding round led by growth capital fund Highland Europe.
Hx helps companies build, deploy and update their insurance pricing models faster, via a SaaS platform called Renew which is aimed at actuaries, data scientists and underwriters.
The InsurTech will use the funds raised in this funding round to accelerate its growth trajectory. The company plans to expand its product and engineering teams to extend the capabilities of the Renew platform and explore new applications for the platform across sectors. Hx’s funding rounds have been oversubscribed several times, highlighting the attractiveness of the InsurTech sector to investors, it said.
Commenting on the insurance industry, Hx CEO and co-founder Amrit Santhirasenan said: “The insurance industry is experiencing unprecedented growth, with data and technology being critical strategic drivers. Our software provides the tools that new entrants to the sector need in order to get to market with best-in-class analytics and the functionality that incumbent insurers require in order to transform.
“We launched Hx after playing the role of insurance for which we couldn’t find the software solution we currently offer,” Santhirasenan added. “No one was offering technology tailored to the needs of the commercial insurance sector. Instead, the $700bn industry could use solutions built for other types of financial services.”
Launched in 2017 by Santhirasenan and co-founder Michael Johnson, both software engineers and qualified actuaries, Hx now services a client base in charge of $50bn worth of premium. Hx’s revenues have tripled each year since launch, and currently employs 30 staff – a number it aims to scale up in the coming months.
Highland Europe’s investments range from file-sharing business WeTransfer to food delivery company Walt, UK digital payments service Modulr and fraud prevention company Featurespace. The company has a proven track record of supporting the software business as a highly innovative service in areas of further growth as companies are forced to accelerate digital adoption.
Highland Europe partner Laurence Garrett added, “We believe hx offers a unique combination of actuarial expertise and software engineering knowhow that delivers exactly the tools that commercial insurers need as their marketplace continues to evolve and transform. This is a sector that is changing very rapidly and hx has already demonstrated considerable growth; we want to help them bring their cloud-based tools and innovation to even more insurers and InsurTech companies.”
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