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Bolt Cover

Bolt Cover

Embedded insurance product protection

Quick Pitch
November 12, 2024

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Today’s feature of Quick Pitch is an early-stage start up making waves in the rapidly growing embedded insurance industry.

The Market

As more non-insurance companies realise the potential of embedded insurance, they will come to regard insurance as a key part of their core business.

BCG

This week's business solves two major problems:

All retailers are able to control customer experience and product maintenance prior to purchase but have zero control post purchase. Embedded insurance extends the useful life of products by integrating the circular economy.
60% of customers would buy insurance or warranties from their favourite brands if it were offered at checkout - but this is not always offered.

One Liner

Bolt Cover provides insurtech focussed protection on POS for retailers, extending the life of products, and giving consumers peace of mind.

Quickfire

Headquarters: London, UK.
Employee count: 9.
Investors: Pre-seed round of £480,000 completed (funded by Bolt Cover’s Founder and CTO).
Funding amount: £1.2 million seed round of which £730,000 is committed (angels and small funds).
Business model: Embedding insurance at the Point of Sale generating commission revenue based on every transaction made with the retailer (Insurance can be white-labelled).
Traction metrics: Weighted pipeline value - top line potential value of each business opportunity weighted by the sales stages (Currently at ~£850,000 in weighted pipeline value).

Due Diligence

APPEALS

Strong Market opportunity: The UK market is growing rapidly, especially in online retail and embedded insurance, which is hugely prominent in the United States already. 74% of consumers research insurance online, but only 25% complete their purchase digitally, indicating room for growth in online insurance sales.
Minimal Competition: There is limited competition for embedded insurance providers in their part of the market (Any retailer smaller than Amazon and the largest UK retailers).
Large TAM: The market for embedded insurance providers to online retailers in the UK is approximately between £1-2 billion in 2024.

POTENTIAL RISKS

Significant workforce costs: Complex tech requires a lot of investment in technical teams and good talent. Managing cash flow associated with paying employees is important to get right.
Regulatory hurdles: Regulation heavy business which may reduce the speed of expansion or large costs associated with legal consultancy.
Customer understanding: While embedded insurance offers convenience, there's a risk that customers may not fully understand the coverage that they're purchasing.

Competition

Cover Genius: An insurtech company specialising in embedded protection for various industries, including retail. They offer a global distribution platform called XCover for insurance and protection services.
Qover: A company that allows brands to integrate insurance into their propositions, enabling businesses to embed insurance products into their existing customer journey.

Founders

Co-founder: Jamie Hamer. Sales leader and entrepreneur. Previous founder of exited React News (now Green Street News) having grown revenues to £10m+. Previously excelled in sales at Procter and Gamble.
Co-founder: Tori Hutchinson. Senior account manager at React News, sponsorship management at Cirque du Soleil and the Ambassador Theatre Group.
Co-founder: Richard Smith. Tech entrepreneur with 20 years experience in building and marketing high-performance technology. Founder of Formulate Digital that has supplied tech services to brands like L’Oreal and Grolsch

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