Aviva and Sesame Bankhall Group are investing £5m in a technology start-up proving mortgage, protection and general insurance services to advisers.
Sesame executive chairman John Cowan says the investment in software provider Acre follows the group’s review of competitive threats in the market.
He says: “We could no longer ignore the new competitive threats circling around our profession and we had to act. By working with Aviva, we saw an opportunity to turn the threat posed by disruptive technology on its head.”
The early stage investment funding round has been made in conjunction with Aviva’s venture capital arm Aviva Ventures.
Acre Software launched out of London-based start-up incubator Founders Factory, and builds software to speed up the process of consumer mortgages for brokers.
Aviva Ventures managing director Ben Luckett says the interest in Acre stems from its relationship with Sesame, which will have an exclusive partnership with the system.
He says: “They have identified a market which could be improved through technology and they’ve gone for it by securing a very large distribution partner, which is often the missing ingredient for success.
“The investment will allow them to build their team further and realise their potential.”