Sponsored Content: Adam Atkins, head of technology underwriting at Hiscox UK, discusses the challenges startups in the UK technology sector face and how insurance can support them on their growth journey
1. 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 challenges.
Innovators may have excellent concepts, but they can struggle to articulate their vision and the associated 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 insurance industry leaders is crucial in helping UK tech pioneers navigate these business challenges and scale effectively.
2. What role do insurers play in supporting scaleup technology businesses?
Commercial insurance companies play a vital role in providing cost effective insurance propositions, such as technology professional indemnity, cyber liability or cyber first party response. These policies ensure that businesses can focus on growth without the worry of unplanned losses or legal issues disrupting operations.
New tech startups or scaling tech businesses will often be in precarious financial positions, so robust risk transfer options 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.
3. 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 startup 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.
For example, in 2024, we ran a series of five roundtable events in our London office. These sessions covered topics such as the difference between scaleup and startup businesses, as well as affordable cyber maturity.
The impact of networking events such as these in driving UK tech innovation will have ripple effects across the industry, benefiting all involved parties.
4. What support do brokers need from specialist insurers to better service the needs of scaleup clients in this sector?
Apart from facilitating the streamlined purchase of specialist technology insurance, insurers can help brokers better understand their customers holistically.
Thought leadership events, such as the aforementioned roundtables for example, facilitate networking and education opportunities, helping brokers get ahead of future customer needs.
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