AI-native insurance broker Meshed has secured £950,000 in an oversubscribed pre-seed funding round aimed at reshaping the commercial insurance market for small and medium-sized enterprises (SMEs).
The round attracted backing from Haatch, Aviva through Founders Factory, the Exponential Science Foundation, and a group of angel investors. The Glasgow- and London-based start-up plans to use the funds to expand its platform, focusing on predictive analytics, risk management, and customer experience.
Mark Costello, Meshed’s chief executive officer, said the industry was long overdue for change. “After nearly 20 years in the industry, I’ve seen just how little has changed. Insurance is still too reliant on paperwork, underinsurance is far too common, and fees are often higher than they should be. We built Meshed to change that, to bring SMEs’ costs down, give them the right protection and make the whole process faster, simpler, and more transparent.”
According to Meshed, around 80% of SMEs in the UK remain significantly underinsured due to traditional brokerage practices and inefficient manual processes. By introducing AI-powered agents for quoting, data collection, and other tasks, the firm aims to reduce administrative costs, lower premiums, and allow brokers to concentrate on client relationships and specialist advice.
Arslan Hannani, chief innovation officer at Aviva, highlighted the insurer’s support for the start-up. “We always want to be on the leading edge of enabling our customers to protect themselves as much as they possibly need to and can. In order to do that, we need to keep finding the latest and the brightest [start-ups].”
Speaking on Aviva’s investment decision, Hannani added: “We have to think about the founding team, the idea, the quality of the founders.” She noted that, with Meshed, “it was pretty easy for us to get on board.”
The company was recently authorised as an Appointed Representative by the UK’s Financial Conduct Authority and has secured 51 insurer agency agreements. Its services cover a wide range of commercial insurance needs, including property, liability, professional indemnity, and cyber protection. Early clients have reported savings of up to 52% on their policies.
Meshed trades under the names Meshed and Meshed Cover and is registered in Scotland.
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