EP 28 - Fintech Frontier - Marshmallow: The Insurtech Unicorn for Newcomers

Marshmallow is one of the most interesting stories in European insurtech: starting in 2017 from a very concrete problem — migrants and newcomers treated as inexperienced drivers by British car insurance — it has built an alternative underwriting model that challenges decades of practices in the industry.

Founders Oliver and Alexander Kent-Braham, twins with backgrounds in tech and finance, observed that traditional insurance penalizes those without an insurance history in the country, even if they have years of driving experience. The missing data — foreign insurance history — was ignored, leading to excessive premiums for a category of drivers who are statistically more cautious than average. Marshmallow has built an alternative model using behavioral and alternative data to assess real risk.

In this episode, we analyze the proprietary underwriting model, the $2 billion valuation reached in 2025 with over 1 million insured drivers and a run-rate turnover of $500 million, and the expansion strategy beyond the newcomer segment into the broader UK insurance market. We discuss the regulatory challenges of obtaining insurance licenses in a complex market like the UK, and Marshmallow's positioning as an insurtech that creates real value in risk, not just in distribution.