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Big data InsurTech firm raises £8m as it looks to scale in the US

Disruptive Capital Investments, the £250m fund managed by City financier and former advisor to Boris Johnson Edi Truell, has invested £8m in an InsurTech business as it looks to expand overseas.

The investment in REG UK, which utilises big data to remedy some of the burdensome due diligence and compliance overheads that insurers face, values the company at £20m and will support its expansion into new international markets, beginning with the US.

REG’s risk management platform already has a strong base in the UK Composite Insurer and Lloyd’s Markets, with the InsurTech startup’s data capture and analytics technology already proving popular with insurers and their intermediaries.

Edi Truell hailed the impact InsurTech was having on a traditionally ‘clunky’ and backward looking industry, and claimed that REG was leading the charge.

He commented: “I’m delighted that Disruptive is now its majority shareholder on the back of our capital investment. REG is a disruptive technology that is changing the way counterparty risk is managed in the insurance sector.

“In just two years, it has over 50,000 billable connections, and has captured over 2,300 insurers and intermediaries as registered users, including many of the sector’s most recognised names.”

Founded in 2014 by Michael Phair, who is also the firm’s Chief Executive Officer, REG offers users access to an extensive database which provides alerts corporate, financial, sanctions or regulatory that could impact risk assessments and compliance.

It has since grown to boast over 2,300 insurers who are utilising its platform including over half of the top 50 brokers in the UK.

Following the investment, which sees Phair retain a 20% stake in the business, he added: “We are delighted to welcome Disruptive as our majority owner. We have worked with Edi since our launch, not only benefitting from a “hands on” funding source during our initial growth spurt, but also from his deep and successful experience in private equity investments in the insurance and financial sectors.

“Disruptive’s new investment will allow us to build on our success to date, supporting our growth both in the UK and internationally and enabling increased resource and development spend for the benefit of our clients and the London Market.”