# Wrisk Financial Model

B2B2C embedded insurance platform enabling global brands to offer seamless digital insurance at the Point of Sale (POS).

- Canonical: https://finamodel.com/startups/wrisk
- Excel download: https://finamodel.com/startup-models/wrisk.xlsx
- Category: InsurTech
- Model type: SaaS ARR / Valuation
- Funding round: Series A
- Funding: $6.5M
- Founded: 2021
- Geography: UK primary; Australia and USA expansion flagged as "Good Case" [DECK, slide 12].
- Customer: B2B2C

## About the company

Wrisk is a B2B2C embedded-insurance platform enabling brands to sell digital cover at point of sale. Its cloud platform handles subscription billing, policy administration, claims, customer care, pricing transparency, and API integration.

In 2020 it had 19,342 policies in force, £11 million of GWP, and £1.7 million of revenue. It earns 15% sales commission on GWP, sharing part with distribution partners, plus modest build fees for customized functionality.

The model is MGA commission revenue. Partners, policies, average premium, new binds, renewals, commission, partner revenue share, and build fees determine revenue. Integration economics, customer retention, claims operations, and GWP growth drive profitability.

## What's included

- 5-year monthly revenue build with stage-appropriate growth assumptions
- Full P&L, headcount plan, and operating-expense schedule
- Cash-flow statement, runway, and burn-rate tracking
- Valuation via exit multiple with a DCF cross-check
- Returns analysis with MOIC and IRR
- Unit economics including CAC, LTV, payback, and cohort retention

## Product & value proposition

Wrisk provides a cloud-based, legacy-free insurance platform that brands embed at the POS to upsell digital insurance to their customers. Key capabilities:
- Subscription billing model with instant mid-term adjustments (MTAs).
- WriskScore™ - proprietary transparency/rating mechanism.
- RESTful API integration; omnichannel ready.
- FCA-authorised; handles customer care, claims, and policy administration.
- Customised products per partner brand.

Core value to partners: increase conversion, share of wallet, and customer LTV. Core value to customers: frictionless, mobile-first insurance experience.

Current live products:
- MINI Flex: subsidised subscription motor insurance (first 6 months free, then ~£15.80/month). Signed contract with BMW/MINI.
- RAC Pay-As-You-Drive (PAYD): usage-based subscription motor insurance. Signed contract; Jan 2021 launch.

## Market

- Global POS insurance market: €1.5 trillion (Oliver Wyman cited).
- Current digital/POS penetration: only 1% of that market captured digitally.
- Incumbents generated €20bn of premiums via B2B2C.
- US auto insurance premiums: $214bn; US = 28% of world's $5bn non-life premiums.
- Australia: 1,060,000 car sales annually; Allianz generates €900M premium from AutoOEMs.
- No explicit SAM/SOM breakdown provided.

## Revenue model

Three revenue streams:
1. **Sales commission**: 15% commission on GWP across the portfolio. 35% of that commission is paid away to B2B2C partners (i.e., net commission ~65% of 15% = ~9.75% of GWP retained).
2. **Software build fees**: modest bespoke capability fees charged to partners.
3. **GWP flow-through**: Wrisk is the MGA/underwriter-facing entity; GWP is top-line volume, not revenue. Commission is the revenue line.

Channel: B2B2C exclusively - Wrisk signs brand partners (BMW, MINI, RAC) who distribute to end consumers. No direct-to-consumer sales.

Pricing examples:
- MINI Flex: £15.80/month after free period.
- RAC PAYD: split parked premium + driving premium (usage-based).

## Traction & metrics

**2020 Actuals**:
- Policies in force: 19,342
- GWP: £11.0M
- Revenue: £1.7M

**Run Rate (Q4 2020)**:
- Monthly binds (new + renewals): 1,500+
- Annualised GWP run rate: £12M+
- Q4 MRR: £150K+

**Customer adoption by quarter**:
- Q1-19: 5,043 | Q2-19: 7,928 | Q3-19: 10,973 | Q4-19: 13,935
- Q1-20: 16,987 | Q2-20: 17,222 (Covid-19 impact) | Q3-20: 19,839 | Q4-20: 19,342 (Covid-19 impact)

**MINI Flex Funnel**:
- MINI Driveaway (Jan–Jun 2019): 704 policies / 19,208 cars sold / 3.7% participation rate.
- MINI Flex (Jan–Jun 2020): 1,520 policies / 10,668 cars sold / 14.2% participation rate → 3x conversion improvement.
- 3-month survival rate (Flex): 78%; participation post-survival: 11.1%.

## Unit economics

:

| Metric | BMW Annual Driveaway | MINI Flex Subsidised Subscription |
| -- | -- | -- |
| Customers | 15,974 | 3,368 |
| Avg. Annual GWP | £582 | £493 |
| Commission (Wrisk share, gross) | £55 | £86 |
| CAC | £15 | £13 |
| Annual profit per customer | £40 | £73 |
| Renewal rate | 81% | 78% |
| Participation rate | 4% | 14% |

Implied gross commission rate: BMW ~9.5% of GWP; MINI Flex ~17.4% of GWP (Flex earns higher commission due to subscription structure).
Loss ratio prediction: 55% (historical sector benchmark).

## Competition / moat

- Wrisk frames itself as unique: "no digital insurance platforms currently being offered to OEMs in the US".
- Moat claims: FCA authorisation, proprietary WriskScore™, cloud-native legacy-free stack, signed OEM contracts (BMW/MINI, RAC), Allianz strategic partnership.
- Competitive context: traditional POS insurance is analogue (paper, phone); direct writers hold 72% US market share but focus on UBI only.
- No direct competitor benchmarking table in the deck.

## Team & funding ask / use of funds

- Series A: £4M+ raised Q2 2020. No mention of current round size or pre/post-money valuation.
- Use of funds: implied to fund scaling to 10+ brand partners by 2025 (UK) and international expansion.

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## Recommended financial model

- **Archetype + why**: Insurance GWP / commission revenue model with a B2B2C channel layer. Wrisk is an MGA-like platform that earns commission on GWP it facilitates. The core model should be: **GWP build-up by partner programme → commission revenue → partner pay-away → net revenue → opex → EBITDA**. This is closer to an insurance distribution / MGA model than a pure SaaS model, though a modest SaaS/software-fee line applies. Usage-based (PAYD) component adds a UBI sub-model for RAC.

- **Forecast horizon & granularity**: 2020–2025 (6-year), quarterly for Years 1–2, annual thereafter. Mirrors the deck's own forecast window.

- **Key drivers & assumptions**:
  1. **Number of brand partners** - 2 signed (BMW/MINI, RAC); target 10+ by 2025 ramp: +2 partners/year from 2022 onward.
  2. **GWP per partner** - anchored to BMW/MINI actuals (£11M total in 2020 across both programmes). RAC Year 1 base GWP: £2.55M. new partners sized at average of existing two.
  3. **Participation rate** - BMW Driveaway: 4%; MINI Flex: 14%. new programmes target 10% participation (midpoint, post-Flex learnings).
  4. **Gross commission rate** - 15% of GWP.
  5. **Partner pay-away** - 35% of commission; net commission retained = 9.75% of GWP.
  6. **Software build fees** - £50K–£150K per new partner (modest; flagged as supplementary in deck).
  7. **CAC** - £13–£15 per customer. blended £14 for new programmes.
  8. **Renewal rate** - 79–81%; 80% blended for model.
  9. **Loss ratio** - 55% (sector historical benchmark). applies to PAYD programme; Wrisk bears no underwriting risk as MGA, so loss ratio is informational/partner context only unless Wrisk is on risk.
  10. **GWP ramp (base case)**: £11.0M (2020) → £16.7M (2021) → £53.9M (2022) → £112.1M (2023) → £187.4M (2024) → £258.2M (2025).
  11. **Sales commission (revenue)**: £1.7M (2020) → £3.5M (2021) → £10.2M (2022) → £20.4M (2023) → £33.4M (2024) → £45.7M (2025).
  12. **EBITDA**: -£1.4M (2021) → £0.1M (2022) → £4.4M (2023) → £11.2M (2024) → £18.1M (2025).
  13. **Headcount / opex**: implied from EBITDA gap vs revenue; no opex breakdown in deck. Back-solve opex from revenue minus EBITDA.
  14. **International GWP uplift (Good Case)**: AUS + USA overlay on top of UK base from 2022 onward. Good Case EBITDA 2024: £4.7M on combined GWP ~£300M+.

- **Scenarios (Base / Bull / Bear - which variables flex)**:
  - **Base**: GWP ramp as per slide 11; 2 signed partners + 8 new by 2025; UK only.
  - **Bull (Good Case)**: International expansion to AUS and USA from 2022; GWP doubles vs. base by 2024; participation rates at MINI Flex levels (14%) across new programmes.
  - **Bear**: Covid/macro impact depresses new car sales (already evident in Q3–Q4 2020); participation stays at BMW Driveaway levels (4%); partner ramp delays by 1 year; revenue breakeven pushed to 2023.

- **Required sheets / outputs**:
  1. `Assumptions` - all drivers above; Base/Bull/Bear toggles.
  2. `Partner Build` - one section per partner programme; columns: cars sold × participation rate → policies → avg GWP → gross GWP → commission → partner pay-away → net revenue.
  3. `P&L` - net revenue, cost of sales (partner pay-away), gross profit, opex (headcount, tech, marketing, admin), EBITDA.
  4. `KPIs` - policies in force, GWP, MRR, CAC, LTV (annual profit / (1 - renewal rate)), payback period.
  5. `RAC PAYD Sub-model` - parked premium + driving premium split; policies in force; Year 1–3 ramp (base vs. aspirational) per slide 10.
  6. `International` (Good Case only) - AUS and USA GWP layers, additive to UK P&L at marginal cost.
  7. `Dashboard` - GWP waterfall by partner, commission bridge, EBITDA walk, PIF growth chart.

## Frequently asked questions

### Is the Wrisk financial model free?

Yes. The Wrisk model is a free Excel download with live formulas.

### Can I change the assumptions?

Yes. The workbook is editable and its live formulas recalculate when assumptions change.