Aviva is set to invest £20 million per year until the end of the decade in digital insurance technology.
Aviva Ventures is a venture capital business committed to investing in businesses with a digital or technology focus. It will target companies operating in four areas, including the internet of things (IoT), data and analytics, innovative customer experiences and distribution and ‘sharing economy’ platforms like Uber and Airbnb.
Part of its digital strategy, the new arm of the business will assist in helping the insurer identify new commercial opportunities.
Ben Luckett, managing director of Aviva Ventures said that the financial outlay will help them develop innovative new business models. This will provide new digital insurance systems and products which make insurance easier for customers.
The first investment for Aviva Ventures has been in Cocoon; a next generation smart home security device. The technology can alert the homeowner to movement and sound within the house using ‘subsound’ technology – low frequency sounds outside human hearing range.
“It's highly appropriate that our first investment is with Cocoon – an exciting new business which combines a unique product, pioneering technology and a strong management team in a home security sector which is set for significant growth,” Luckett added.