London start-up Brolly has been acquired by Direct Line Group.
CEO Phoebe Hugh, who launched the AI-powered broker in 2016, said the deal would enable the Brolly team to take its products to a much larger audience.
The deal is expected to close during the third quarter of 2020.
“I started Brolly to reinvent personal insurance, and by listening and adapting to a new generation of consumers, we have made great progress so far,” said Hugh.
“I’m thrilled to be taking the next step in this journey that will allow myself and my team to scale the technology and products to a much bigger audience.
“We are excited to continue to build beautiful and personalised products to simplify insurance within Direct Line Group, one of the UK’s most innovative large insurers.”
Last year Brolly launched a contents policy which saw subscriptions reduce in price every month with loyalty.
Kerry Chilvers, marketing director at Direct Line Group, added: “We are delighted to announce our plans to acquire Brolly and are looking forward to welcoming Phoebe and her team to the Group.
“We both want the same thing which is to give customers value and simplicity. We know that we can learn a lot from Phoebe and her team and we are looking forward to channelling their excitement and significant expertise to help us with our ambitious plans.”