Veridian Ventures invests in Democrance to Support its Vision to Democratize Insurance
Investors in this round: Veridian Ventures, Global Ventures
Democrance, the UAE-born, UK-registered InsurTech venture, completed its latest funding round. Veridian Ventures LLP, a London-based angel syndicate, participated in the round which was led by VC firm Global Ventures.
Founded in 2015 with a mission to enable partnerships that make insurance accessible and affordable for all emerging market segments of society, Democrance helps insurers expand their digital offering thereby unlocking the potential for entirely overlooked pockets of customers, products or channels. Democrance is a B2B data-enabled, white-label SaaS plug-and-play technology platform that digitizes sales & distribution verticals of the insurance value chain for emerging market segments.
Democrance’s platform enables insurance companies to increase sales, drive retention and cross-sell, and unlock new segments through leading-edge digital and data-enabled technologies plugged into the wider insurance and partner ecosystem. By automating the entire value chain of insurance sales from marketing, distribution, underwriting, and policy administration to claims management, insurers can benefit from incrementally higher sales conversion and substantial cost savings while widening the reach of new and untapped markets at significantly lower unit costs. Democrance’s solution obviates the need for core system replacement by sitting on top of an insurer’s core platform and seamlessly connecting various modules to automate the end-to-end customer journey.
Michele Grosso, Chief Executive Officer of Democrance, said: “Democrance aims to enable the consumerization of insurance where insurance products will be bought and serviced remotely and seamlessly in the growing digital, virtual, and remote e-commerce world. In six years, we have expanded our footprint across 12 countries and work with the world’s leading insurance organizations. We are thrilled to have Veridian Ventures among our investors: their expertise in the SaaS space businesses coupled with their exceptional track record and extensive financial services background will help us grow and establish ourselves as a leading InsurTech player globally”.
Dan Schonfeld, Founding Partner at Veridian Ventures, added: “Traditional insurers are facing stiffer competition and increasing margin pressures, resulting in a growing need to both grow cost-effectively as well as increase the efficiency of legacy operations. The COVID-19 pandemic, coupled with accelerating changes in customer behaviour, are pushing the industry to become digital much more quickly. However, doing so typically involves sizeable investments for legacy players. This is where Democrance comes in, with its proprietary platform which can allow incumbent insurers to deploy advanced digital capabilities without incurring significant costs by buying digitization-as-a-service from Democrance. In the markets the company currently operates in, as well as in others it has yet to venture into, this represents an immense opportunity, which once realized will deliver substantial value to policy-holders, insurers, Democrance and its shareholders. We are excited to join Michele and the team on this journey and stand ready to support in any way we can.”
Fuelled by population growth, regulatory reforms, infrastructure development, the influx of foreign capital, and the current low penetration, The GCC insurance market is projected to grow from US$32 in 2020 to US$43 billion in 2025, registering a healthy CAGR of 4.3%. Capturing these opportunities is going to require insurers and therefore drivers of InsurTech to ramp up digital capabilities in the near term.