Groundbreaking insurance and protection-as-a-service company, Setoo, today announced it has closed an €8 million (±$9.3 million) Series A funding round, bringing the total amount raised to date to €10.3 million (±$12 million). The main investor in this and the seed round is Kamet, AXA’s Insurtech startup studio.
Setoo is disrupting the insurance market by enabling e-businesses to create and sell great protection tailored to the consumers’ needs and fit for the digital age.
In today’s digital world consumers expect businesses to provide services that are tailored to their exact needs and deliver a great customer experience. Whilst consumers have concerns for which they would like to buy protection, they are increasingly unwilling to spend money on what they see as irrelevant insurance products that don’t meet their needs. This impacts e-businesses negatively, who consider insurance to be a major component of their ancillary revenues and a means to create a great customer experience.
Setoo is solving this problem by empowering e-businesses, which understand their consumer best, to quickly and easily build and integrate tailor-made, simple insurance products that are automatically embedded into the customer journey. E-businesses benefit from one-click underwriting directly on their digital assets and providing personalised protection with automatic compensation for their consumers. By using these super targeted products, e-businesses such as e-commerce sites and online travel agents (OTAs) are able to meet their specific business goals, whether they are looking to delight their customers, generate new revenue streams, or differentiate within their crowded markets.
The highly scalable platform covers risks that relate to exogenous events that could ruin the customer journey. 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. In these situations, Setoo sends an automated SMS to the consumer on behalf of the OTA, explaining 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 this service, Setoo 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. Insurance companies that partner with Setoo benefit from working with the brands employing some of the best marketers in the world, who design and distribute new protections that are highly consumer-centric and innovative.
“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”, commented Guillaume Borie, Chief Innovation Officer of the Group, AXA. “Setoo’s platform enables digital businesses to create, through automation, new types of insurance that are more relevant to consumers.” he added.
“Setoo stands for simplicity – in French ‘c’est tout’ means ‘that’s it’. My Co-founder Eyal Gluska and I chose the name to symbolise how simple and quick it is to create effective new protection products using the platform,” commented Noam Shapira, Setoo’s Co-CEO.
Insurance and protection-as-a-service platform Setoo turns insurance into a powerful business accelerator. Drawing on Setoo’s strong insurance expertise, e-businesses are supported to deliver personalised insurance solutions, which generate new revenue streams by transforming the customer experience. Setoo has headquarters in London, an insurance center in Paris, and a research and development centre in Tel Aviv. The company’s Co-CEOs, Noam Shapira and Eyal Gluska – both veterans of the Israeli high-tech scene – lead the team along with Pierre-Olivier Desaulle, Setoo’s Chief Insurance Officer. To find out more visit setoo.com.
Kamet backs brash entrepreneurs building the next generation of ground-breaking technology companies, geared to improve, enrich or disrupt the insurance ecosystem. With offices in Paris, London, Tel Aviv, and soon in Asia and America, Kamet focuses on pioneering start-ups that are ready to scale across the global stage. Funded by the AXA group, Kamet delivers unparalleled access to top corporations to match cutting-edge entrepreneurs with one of the world’s most powerful FI/ Insurance companies. To find out more visit: www.kametventures.com