Setoo, which is a London, UK- Tel Aviv-Yafo, Israel and Paris, France-based based insurance and protection-as-a-service company, closed an amount of €8m in a funding round of Series A.
The round, which brought total amount raised to date to €10.3m, was led by some of the leading investors across the globe that is Kamet, AXA’s Insurtech startup studio.
The startup as of now was led by Co-CEOs Eyal Gluska and Noam Shapira and and Pierre-Olivier Desaulle, Chief Insurance Officer, Setoo enables e-businesses such as e-commerce sites and online travel agents (OTAs) to create and sell protection tailored to the consumers’ needs and fit for the digital age.
The insurance products are automatically embedded into the customer journey.
AXA’s chief innovation officer of the group, Guillaume Borie, said in a statement at the time of funding: “Our investment in Setoo supports AXA’s strategy to build more impactful insurance platforms as one of our four key priorities for innovation and to become a partner for the end customer.”
Setoo’s co-chief executive, Noam Shapira, said: “This investment from Kamet is key to helping us expand across the EU and build further new products to empower more businesses to take control of insurance for their consumers.”
The platform major helps the users to covers risks that relate to exogenous events that could ruin the customer journey. Let’s say for example, an OTA selling connecting flights from multiple airlines can provide insurance to cover for missed flight connections if preceding flights are delayed or cancelled at any point of time. At the time of these situations, Setoo sends an automated SMS to the consumer on behalf of the OTA, which will explain all the things that a full refund has been provided and offering alternative flight suggestions. In another scenario, a tour operator selling ski holidays could insure against a lack of snow, fully automating payment and removing the hassle of the claims process for the customer.
To provide all these kind of service, the company opted to use the Managing General Agent (MGA) model, so the company is licensed by the FCA to distribute products on behalf of insurers in the EU.
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