Cyber reinsurance firm Envelop Risk raises £4.9m
Data-driven underwriting and risk analytics firm Envelop Risk, has secured an investment of £4.9m ($6m), led by AI-specialist investor Alpha Intelligence Capital.
Envelop Risk offers bespoke underwriting solutions focused on the global cyber reinsurance market, using a proprietary model which addresses the complexity of cyber and other emerging risk by combining artificial intelligence, security analytics, intelligence gathering, economic, financial, and behavioral analysis; and modelling and simulation.
The Series A financing will be used to further the London firm’s investment in proprietary machine-learning and data-driven underwriting activity in the capital and Bermuda.
Founded in 2016, the firm includes insurance expertise in AI and data analytics, in partnerships with specialist underwriters.
In less than three years it said it has become a dominant force in cyber reinsurance.
AIC will invest as lead in the Series A with additional support from existing investors including MS Amlin and Dymon Asia Ventures.
Envelop Risk CEO Jonathan Spry said the coronavirus crisis posed important questions for the insurance industry, and cyber reinsurance.
“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”.
“Envelop is a natural partner for traditional insurers and underwriters to disrupt the market space of cyber-insurance- we’ve helped reimagine and reshape how cyber-risk is priced in a traditionally opaque and complex market.
“Now, we 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.”
Antoine Blondeau, co-founder and managing partner of Alpha Intelligence Capital. Added: “We at AIC have been impressed with the Envelop team’s ability to combine advanced algorithmic science with deep cybersecurity domain expertise.
“The resulting ‘engine’ is foundational not just to cyber risk insurance but also to the broader specialty and emerging risk insurance ecosystem. We look forward to supporting Envelop as it further expands its product and commercial reach globally”.