Online claims firm secures new funding round
The North West Fund for Venture Capital, managed by EV, has invested in a business which has created a new model for handling personal injury claims.
The size of the investment in InterRisk Solutions hasn’t been disclosed, but it is the ninth investment made by the fund to date and brings the total amount invested to £2.4m.
InterRisk Solutions was founded by insurance law specialist Mark Brickles to provide an alternative to the conventional system in which claimants use a solicitor on a ‘no win no fee’ basis. Instead, it allows them to manage the claim themselves by guiding them through an online process with support from a telephone helpline.
The company acts as an ‘honest broker’ between claimant and defendant and offers benefits for both sides. Claimants use the service free of charge and typically receive their compensation in just three months, compared with around 18 months using the conventional route. The defendant, or their insurer, will foot the bill and saves up to 80% on legal fees.
The investment made by the North West Fund for Venture Capital is part of a larger investment round, with the remainder coming from private investors.
It will be used by Wirral-based InterRisk Solutions to develop the business further.
Andrew Redmond, the former CEO of Debt Free Direct, is also joining the company as chairman.
Richard Young, fund manager for The North West Fund for Venture Capital, said: “The huge cost of legal fees in personal injury cases has long been a concern within the claims industry. InterRisk Solutions provides a much more efficient system and offers benefits for both claimants and insurers alike.
“The company has great potential and the experience of the new chairman will be a real asset. The business could also potentially benefit from any future changes in legislation.”
Mr Brickles said: “InterRisk Solutions aims to revolutionise the claims management industry by pioneering a new and more ethical business model. The initial investment from business angels has enabled us to put the concept into practice and prove its viability. This latest round of funding will allow us to take the business to the next level.”
Brabners Chaffe Street advised the fund and O’Connors LLP advised InterRisk.
