A digital life insurance startup, Anorak Technologies, has raised seed funding with the purpose of creating partnerships to grow its online platform.

The company has turned the process of obtaining life insurance, from finding and comparing policies to helping clients understand them and signing them up, into an online experience using data science and machine learning. Anorak Technologies’ platform works to provide each user with the best life insurance policy for their individual needs.

“Somewhere along the way, the life insurance industry lost sight of its customers, clarity and trust dropped off the menu,” David Vanek, co-founder and CEO of Anorak told TechCrunch. “If you’ve ever been through the process, you may understand: it’s a universe of confusing products, insurance jargon and painstaking user experience (if we can call it that). Even when you know you should sort out your life insurance, it gets pushed to the bottom of the to-do list, because, well, life takes over. For that reason, it’s often actively sold, not proactively bought.”

The £4 million received by the London-based startup will be used in securing and growing connections and partnerships with banks, wealth managers and online brokers, to better serve the startup’s platform. Anorak Technologies is also working to easily work the platform into other aspects of a user’s online presence.

“We see ourselves as a smart data company that delivers independent insurance advice, founded on trust and transparency,” Vanek said. “Our vision is to build the world’s smartest insurance companion and redefine the way millions protect their future. To put people back in control.”

The digital insurance startup was founded in 2017 by Vanek and Vincent Durnez and markets towards the younger population, such as those who are starting families and would have new need for life insurance in the digital age.

A roadblock faced by the startup is the low population of people within the UK who are looking for life insurance, an aspect the company plans on dealing with my partnering with the e-commerce and online banking sectors, giving it the ability to offer customers insurance based on significant events in their life such as the purchase of a new home.

“There are key life events when people need to consider getting protection: birth of children, taking a mortgage, [and] change in income,” Vanek said.

The £4 million in seed funding comes from Kamet Ventures. Kamet Ventures, founded by AXA is an incubator backed by €100 million. The online insurance platform also has plans to partner with companies in the fintech sector and API play.

“The most important aim for us is to figure out exactly what kind of protection you need,” Vanek said. “So we gather the necessary data from you about your family, home, income and finances. Then, having scanned policy documents from all the major insurers, and analysed hundreds of pages of smallprint, we find the best policy to suit your circumstances. We’re independent so there’s never any pressure to buy: you apply when you’re ready.”

(Picture courtesy: Anith.com)