Nick Burgess: Broker feedback key to launching new proposition

1. How did you go about launching your new proposition MarkelTech?

We’ve been offering professional indemnity (PI) and tech product coverage for over 30 years and saw an opportunity to simplify brokers’ navigation and leverage Markel’s international capabilities for overseas exposures. We collaborated with brokers and insureds to create a scalable solution that supports all tech companies, from SME to large established players.

MarkelTech provides insurance solutions for startups, SMEs and high-growth companies in tech innovation and services. It covers PI, cyber liabilities, property, business interruption and liability risks, catering to rapid growth and innovation in the UK and internationally.

2. What is the opportunity for brokers in the technology space?

Technology is an incredibly exciting sector for brokers right now. The UK tech industry has surpassed a $1tr valuation, with artificial intelligence (AI) leading the charge. The UK is now the top destination in Europe for AI investment, hosting over 1,800 VC-backed AI startups and 20 AI unicorns. It’s also promising that 84% of startup and scaleup founders are optimistic about the future of UK tech, which bodes well for the future.

MarkelTech is specifically designed to help brokers engage in meaningful and relevant conversations with tech companies. It helps brokers to position themselves as a trusted advisor, providing a comprehensive range of insurance and business services in one product.

3. As part of the development process, did you consider the views of any external parties?

Customer feedback is essential to product development from our perspective. Given the relatively complex nature of the product, we undertook in-depth interviews with a select number of brokers and tech companies, gaining incredibly valuable information from those conversations.

The tech businesses we spoke to were a mix of companies with a wide range of turnover and employee numbers. All had, or were considering taking out, tech insurance and were responsible for insurance decision making.

We also spoke to eight brokers, all of whom were experienced in the sector.

4. What are the key insurance risks to tech companies and how have you addressed these?

Tech companies face the same PI and cyber risks as other professionals, but there’s a greater overlap between the two. Cyber issues can pose significant reputational threats and liabilities around client data, making prompt response crucial. Insureds benefit from a 24/7 response service that covers emergency costs, even before a claim is confirmed as valid.

Amid global instability and war risks, MarkelTech offers comprehensive coverage with first and third-party protection, cyber training, a knowledge hub and a cyber-risks toolkit. Brokers can avoid separate cyber insurance to prevent lengthy claims and high legal costs due to intertwined PI liabilities.

5. What else are you doing to help policyholders mitigate risk?

We are focused on providing support within MarkelTech to help with everyday business challenges.

Customers can access services designed to increase cash flow, support growth challenges and reduce legal risks. Our research and development (R&D) advisory service can help secure vital funding.

HR support helps with employment law compliance as companies grow and a contract review service lessens the risk of signing unsuitable agreements.

With many tech firms using contractors and freelancers, a specialist IR35 advice service protects against the risk of HMRC fines due to ‘hidden’ employment practices.

This is an unmatched level of support in the market and it’s all provided in house by our own experts.