Government data revealed that the finance and insurance sector secured £121 million in funding through the UK’s Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) in the 2023–24 financial year, a £10 million increase on the previous year. Some stakeholders attribute part of the increase to the insurance industry’s performance.
This marks a 9.01% year-on-year rise and positions the sector second among all UK industries for growth in EIS and SEIS-backed investment.
The findings, published by money.co.uk’s business loans team, come as the sector continues to attract investor attention. The increase in capital may be partly attributed to the insurance market’s performance during the period, with favourable underwriting results and stable investment returns reported across 2023 and early 2024. These conditions likely contributed to increased confidence among investors participating in government-backed early-stage funding schemes.
The number of financial and insurance businesses receiving EIS or SEIS investment also rose slightly over the past year, from 245 to 255 companies. On average, businesses in this sector received nearly £475,000 each, which is the highest per-company funding level of any industry examined.
EIS and SEIS provide tax incentives to investors backing early-stage or high-risk ventures. For insurance firms, particularly new entrants or technology-driven providers, these schemes can be a source of early growth capital at a time when operational and regulatory costs continue to evolve.
While funding levels increased in finance and insurance, other sectors such as construction, agriculture, and manufacturing recorded sharp year-on-year declines. Construction, for example, saw EIS and SEIS investment fall by more than 50%.
Commenting on the wider funding environment, Joe Phelan, business loans expert at money.co.uk, noted that although schemes like EIS and SEIS offer a useful capital source, they may not serve all firms equally. In sectors where early-stage equity funding is less accessible, including some areas of insurance, business loans can offer alternative means to scale or maintain operations.
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