Sponsored Content: Adam Atkins, head of technology underwriting at Hiscox, speaks about the challenges start-ups in the UK technology sector face and how insurance can support them
What are the primary challenges scaleup technology companies face when looking to grow their businesses?
The UK technology sector thrives on innovation. It is a hub of brilliant minds brimming with groundbreaking ideas. However, transforming these ideas into successful, scalable businesses often comes with its challenges.
Innovators may have excellent concepts but can struggle to articulate their vision and the necessary steps to bring them to life. This uncertainty can hinder their ability to secure investment, establish governance structures and plan recruitment strategies. The support of industry leaders is crucial in helping UK tech pioneers navigate these business challenges and scale effectively.
What role do insurers play in supporting scaleup technology businesses?
Commercial insurance companies play a vital role in providing cost-effective insurance solutions, such as technology professional indemnity, cyber liability or cyber first party response. These solutions ensure that businesses can focus on growth without the worry of unplanned losses or legal issues disrupting operations.
New tech start-ups or scaling tech businesses will often be in precarious financial positions, so robust risk transfer solutions are essential. Insurance providers must cater to the specific needs of UK tech innovators by offering straightforward policy wording, responsive, flexible and specialist claims services, and a seamless digital purchasing journey for brokers.
To what extent could specialist insurance brokers extend their remit beyond advice on the purchase of insurance to help support growth in the technology scaleup community?
There are a growing number of insurance brokers in the UK specialising in the technology sector. These brokers understand the unique technology ecosystem and will often have a sizeable number of start-up and scaling tech businesses in their portfolios.
Beyond offering expert and timely insurance advice, brokers can also leverage their tech community to foster knowledge sharing, collaboration, and networking. In 2024 we ran a series of five round-table events in our London offices covering such topics as “Scale-up to Start-up” and “Affordable cyber maturity”. The impact of networking events such as these in driving the UK tech innovation will have ripple effects in the industry, benefiting all involved parties.
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