London-based Insurtech Bequest is raising £ 1.7m to make insurance easier for millennials
Almost all sectors and services are going through digitization and we are seeing that this trend has accelerated since the COVID-19 pandemic. The insurance industry has also turned rapidly and most of its services are now offered online. The London startup Bequest wants to shake up this segment further by offering simplified wills and life insurance for the millennial market. It has secured £ 1.7 million in seed funding and is also launching its new insurance offering that has been in beta testing.
The next step
The latest round of financing for legacy was led by Kuvi Capital. Clocktower Ventures and Form Ventures also participated, and all three investors will join the startup board as the platform grows. Bequest will use these fresh funds to further develop its product range and attract its services. It also works with Panda’s Foundation, but exact details on this are still under lock and key.
James Buckley-Thorp, Bequest CEO and Founder, said, “There are currently 38 million families exposed and uninsured each year. At Bequest, we want to make sure everyone is covered by making it relatable, accessible and something that doesn’t cost an arm or a leg. ”
Thorp adds that the life insurance industry is “obsolete and overly complex” and, like most services, people need quick online access to life insurance with more knowledge and support. “We saw that in the very positive response to our product so far. With this seed funding, we can now accelerate our growth and become the all-of-life platform for the millennial generation, ”says Thorp.
Life insurance modernization
In a conversation with UKTN, Thorp reveals more about Bequest and its goals. The company was founded in 2019 by James Buckey Thorp after realizing how archaic the insurance industry was when he lost a friend in late 2017. and with the needs and wants of the millennial generation as a whole. This is the birth of the legacy. “
The startup focuses its offerings on millennials and claims to question the status quo. Typically, coverage can take up to 6 weeks or even longer to complete, but Bequest says it can be done in as little as 15 minutes. “People get instant coverage, up to £ 500,000. Instant access knowing that their family will be supported no matter what, ”added Thorp.
The startup also wants to educate its consumers and has content on its website for those who want to learn more. In addition, it gives users the option to change their policy up to three times and is also keen to fill the poverty premium gap where those in poorer areas could end up paying more for insurance. Bequest avoids this by not using the customers’ postcodes as part of the risk analysis.
Eliminate mental health discrimination
Bequest says it won’t conduct medical exams and is also changing the way the insurance industry works by eliminating mental health discrimination. It claims to be the first life insurer to pay in the event of suicide without the 12 month waiting period that other insurers seem to mandate.
“Although most companies have discriminatory clauses, we don’t think that’s right. Mental health as a whole is out of date and misunderstood and we have updated our documents to reflect this. Our set of questions takes your physical and mental health into account, ”says Thorp. “By working with grief counseling charities, we are also able to raise awareness of their concerns in order to reduce the stigma of such issues.”
COVID and insurance
As the pandemic affected different sectors in different ways, we inquired how Bequest was affected. Thorp notes that they saw life insurance claims grow over 4050% during the pandemic. Additionally, at the beginning of the pandemic, the company immediately rolled out a will-writing service with its will-writing partner, James Pearson Estate Planning. The startup has grown 320% since the pandemic began.
“Life is short and our understanding of morality has changed completely since the pandemic. It is only right that we continue to support everyone we can, but with a new, normal approach, ”Thorp concludes.