Ripe Insurance has posted its 2017 financial results today, revealing a 22% increase in turnover for the year.
The tech-driven niche insurer, which rebranded itself from The JRW Group last year, saw revenues rise from £9.2 million in 2016 to £11.2 million in the year ending December 31, 2017 – its 10th consecutive year of annual growth.
Trading EBITDA was up slightly at £2.05 million in 2017, compared to £1.96 million in the previous year, which the insurer said was due to its continued significant investment in technology and digital marketing.
CEO Colin Whitehead attributed the increase in turnover to the growth of Ripe’s existing products, as well as the launch of new offerings. During 2017, the insurer launched two new products – valuables and small business – and saw all of its existing lines continue to grow, Whitehead told Insurance Business.
The firm also widened the reach of some of its existing products: Boat coverage was extended to include additional classes of boat, and the ‘insure4sport’ offering, which covers personal trainers, fitness instructors, coaches, teams and players, was expanded to include an extreme sport option.
During 2017, employee numbers rose by 20%, which Ripe said was predominantly driven by its investment into in-house IT and digital marketing teams. To accommodate its 60-strong team and allow for future growth, the firm also invested in expanding its Manchester office during the year.
In 2018, there are plans for three new product launches. While the insurer said it won’t reveal any more detail until launch, Whitehead added that “you can probably guess they will be niche, consumer and fully transactable online.”
“2018 will see us explore new technologies and unique data-driven pricing models where policies, pricing and marketing can all be personalised to the individual’s needs,” the CEO went on to say.
Ripe will also recruit a data scientist as part of its Knowledge Transfer Partnership with Salford University’s School of Computing, Science and Engineering.
“At heart we are disruptors and harnessing AI and robotics to assist with price and risk modelling seemed the next natural step for us,” Whitehead said.
“Too often the larger insurers have bundled everything up for the consumer; we offer them an unbundled, build-your-own product and the more sophisticated we can be, the better that product can be tailored to the individual.”
Whitehead added that 2017 had seen Ripe deliver “another strong performance.”
“It’s pleasing that all our products experienced growth in 2017 and policyholders should pass the 200,000 mark this year,” he said. “It feels like 2017 was a year of investment; in rebranding, fresh new offices, digital capabilities and new products. Achieving increases in turnover and EBITDA in a year of significant investment demonstrates the strength of our business model. Bespoke policies, competitive pricing and a slick online experience are at the forefront of everything we do, reflecting the needs of today’s tech-savvy customers.”
