Direct Line Insurance Group plc (“Direct Line Group” or the “Group”) announces a 15% equity stake in Canopy, a rental market disruptor founded in 2016, which is targeting the traditional rental market head-on.
Canopy offers an alternative to costly security deposits that are hindering ‘Generation Rent’. The service is based around a RentPassport™, which provides proof of an individual’s rental and credit history and their ability to pay rent promptly. This helps both landlords and agents to pre-approve renters, saving them significant time with the vetting process. It is also a record of trust for renters and over time, this will give renters access to a range of insurance products based on a TrustScore™.
Adam Whiteley, Director of Household Development at Direct Line Group commented: “This transaction marks our latest investment in a Fintech company, building on our ambition to be at the forefront of advancements in the insurance landscape. The current rental model asks renters to pay deposits of several weeks’ rent, and we believe Canopy’s use of mobile technology provides an innovative solution towards this. By re-engineering the UK’s rental market Canopy are seeking to enable ‘Generation Rent’ to gain access to better financial services products while demonstrating how technology can be a positive disruptor.”
Tahir Farooqui, CEO and founder of Canopy, said, “We are excited by this financial investment as it supports the expansion of our business, which aims to improve every aspect of renting for all parties concerned – renters, landlords and estate agents. The days of the security deposit are now numbered, and we can now empower renters to become buyers far more quickly because their rent can now count towards their credit history.”
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Direct Line Insurance Group plc
Direct Line Group is headquartered in Bromley. Through its number of well known brands the Group offers a wide range of general insurance products to consumers. These brands include Direct Line, Churchill and Privilege. The Group also provides insurance services for third parties through its partnerships division, Brand Partners. In the commercial sector, the Group’s NIG and Direct Line for Business operations offer insurance products for businesses distributed through brokers or direct, respectively.
Canopy (formerly InsureStreet), was founded in 2016 by Tahir Farooqui after he saw how his younger brother struggled to find the large sum cash deposit typically required by landlords. The company’s mission is to solve this growing deposit crisis for ‘generation rent’.
Its service offers an alternative solution as users are able to access an on-demand insurance platform that generates real-time prices for deposit insurance, and rewards the good behaviour of trustworthy tenants. This removes the headache for landlords.
As the company aims to unlock billions of pounds currently locked away as deposits across the UK, it hopes to redirect that capital back into the economy. https://findyourcanopy.com/