Fruga raises £1 million

Manchester-based insurance technology startup Fruga has raised £1 million from NPIF II–PXN Equity Finance, managed by PXN Ventures, and UK venture capital firm Haatch. The company had previously been bootstrapped.

Fruga provides technology that insurers, MGAs, and brokers can embed in their customer portals, allowing policyholders to earn retailer-funded credits on everyday spending toward their insurance renewal. The credits can only be used with the existing provider, giving customers a financial incentive to stay.

The platform uses open banking to connect customers’ bank accounts or payment cards. Spending with participating travel, supermarket, and retail brands generates credits that accumulate throughout the policy year. According to the announcement, renewal discounts can exceed £150.

Fruga also uses consented transaction data to help insurance providers identify changing customer needs and cross-selling opportunities. For example, purchases of pet supplies could prompt an insurer to offer pet coverage before the customer visits a comparison site.

MoneyExpert already uses Fruga’s technology to let customers earn credits toward insurance costs.

“Insurers hold some of the biggest customer bases in the country, yet the industry has trained those customers to see their policy as a price and nothing more. Every renewal sends them back to the comparison sites, and the insurer that wins them this year loses them the next. We started Fruga to take customers out of that aggregator cycle and put real value back at the heart of the relationship. Customer value and data insights is what makes that possible.” – Founder and CEO Ross McCarthy.