London Stock Exchange welcomes its first InsurTech IPO
Last week, the London Stock Exchange welcomed its first InsurTech company. The company results from the reverse takeover agreed between Spinnaker Acquisitions (SPAQ) (“Spinnaker) and HomeServe Labs Ltd (“Labs”), a subsidiary of FTSE 250 consistent, HomeServe PLC. A name change from Spinnaker Acquisition (“Spinnaker”) to Ondo InsurTech Plc (ONDO) is planned in due course.
Spinnaker raised around £3.4m in placements and subscription and, as per its company announcement on 13 December 2021, agreed to acquire the entire issued share capital of Labs, by way of a reverse takeover.
The company's flagship product is the LeakBot, an intelligent water security system for the detection of micro-leaks in residential properties. As of today, there are 39,000 registered LeakBot devices supplied to partners.
Water damage is the number one source of claims on residential properties in the 97 million households in LeakBot’s target markets, resulting in significant waste of building materials, which often must be stripped out and sent to landfill. This accounts for approximately 30% of claims paid in the UK and USA, and over $17 billion of claims annually across the two countries.
The team combines market experience and innovation, with Craig Foster as
Chief Executive Officer; Mark Wood as Non-Executive Chairman, and Spinnaker's Andy Morrison and Stefania Barbaglio will continue to serve on the board as Non-Executive Directors.
The global InsurTech market offers multiple opportunities for growth and is expected to reach a value of over $10 billion by 2025, with growth of more than 10% from 2019 to 2025 (source: [insert]).
Disruptive technologies such as Internet of Things (IoT), artificial intelligence (AI) and blockchain are poised to add value and efficiency to insurance mechanisms and become widely adopted by insurance companies.
In 2020, UK InsurTech companies received investment totalling $361m, an increase of more than 60% on the previous year.