In last Wednesday’s Budget, the Chancellor surprised investors by doubling the investment limit in enterprise investment schemes (EIS) from £1m to £2m for knowledge-intensive companies. On the face of it, this is a welcome boost to Insurtech companies because they can access this much needed source of funding.  

However, looking more closely, this benefit will not equally apply across the plethora of young technology businesses targeting the giant insurance industry. As I understand it, insurers, no matter their size or maturity, do not qualify for EIS because they bear the customer's financial risk.  If you segment the Insurtech market into three – insurers, brokers, and vendors – only the latter two camps are poised to benefit from this funding.