Technology provider Codat and specialist insurance broker Capsule are partnering with Aviva in a bid to ensure high-growth businesses have the right level of cover in place.
Codat’s technology securely connects data from all types of small businesses’ financial software. It is trusted by over 250 banks, payments and software companies globally, and boasts an array of backers including J.P. Morgan, American Express, PayPal, and Shopify.
Capsule is a specialist insurance provider that helps startups and scale-ups in sectors such as Web3, Fintech, Enterprise (SaaS) and Consumer Tech navigate the risks of rapid expansion by ensuring they have the proper protection in place.
The companies highlighted that underinsurance is a hidden risk to high-growth businesses. In fact, Aviva research shows that 50% of all UK SMEs are underinsured.
Capsule said that this rises to up to 80% in fast-growing companies.
Conventional business insurance works on static cover that is renewed annually. It is typically based on estimates such as turnover, profit and wages. However, relying on a yearly snapshot risk quickly outdated cover, leaving high-growth companies vulnerable.
Capsule, Codat and Aviva have set out to directly address this underinsurance problem and offer cover that evolves with company growth.
The partnership will see Capsule enable Aviva to onboard and review clients faster using Codat’s API that connects SMEs’ business data to service providers.
Thomas Wynne, CEO and co-founder at Capsule, said, “The hyper-growth startups that we partner with are constantly innovating and evolving. This not only impacts their insurance requirements, but it also means they have a different expectation of the service providers that they align with. The combination of one of the UK’s leading insurers, the leading financial API and the most agile insurance provider is a really powerful one. Startups can now upload their pitch deck, share their current policies and then share their financials instantly.”
Pete Lord, Co-Founder and CEO, added, “Our mission at Codat is to make life easier for small businesses and buying insurance is one of those painful but necessary parts of running a business that is screaming out for a more digitised approach.
“As with many other manual processes, better access and flow of data is the key to improving the experience and outcomes for customers, carriers and brokers alike. We’re excited to be working with Aviva and Capsule on this project which will set a new precedent for the industry.”
Earlier this month, Capsule partnered with insurance platform Vouch. As part of the partnership, Vouch made an investment in Capsule, which the company said would help advance its technology.
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