CPP re-enters UK market with stake in cyber security firm
Credit card insurance group CPP, which has faced several years of reputational and financial damage after being hit by a misselling scandal in 2012, has taken a stake in cyber risk start up KYND, marking its re-entry into the UK market.
CPP has agreed to invest £1.2m in the company as it looks to boost its digital capabilities.
KYND was founded by Andy Thomas who led consumer data and fraud protection company Garlik through to its acquisition by Experian, and Mike Harris, the founding CEO of First Direct, Egg and ex CEO of Mercury who will be chairman of the business.
CPP said: “Following the acquisition of Blink Innovation in March 2017, the investment in KYND further demonstrates CPP’s commitment to investing in innovative people, businesses and products that have relevance for its distribution partners internationally. The products developed by KYND will be available to CPP’s current and future partners later this year, creating differentiation for those partners and helping businesses manage cyber risk more effectively.”
CPP plans a re-entry into the UK market in the first half of 2018 with the new products from KYND and Blink leading the relaunch. This follows the FCA regulatory approval that was granted in December 2017 for Blink UK to act as an insurance intermediary in the UK market.
CPP also announced the appointment of Michael Whitfield as managing director of the new UK business. Whitfield has an extensive background in the insurance market, his most recent position being acting executive chair of Building Block, a specialist European insurance company.
CPP chief executive Jason Walsh said: “I am excited about re-entering the UK market and our investment in KYND, both of which are important steps in our ongoing commitment to innovation and new product development, ensuring our partners have access to the best products for their customers. Cyber threats are the fastest rising risk facing organisations across the world. KYND is a UK company with the potential for global reach and I look forward to partnering with them to help them grow.”
CPP was fined £10.5m by the Financial Conduct Authority in 2012 and paid out £65.8m in compensation to customers for mis-selling.
The company moved its operations from York to Leeds after selling its headquarters to Gear4Music for £5.3m last year.
