Flock- insurance in a new light, Series A funding update
Flock is changing the way insurance works and has just completed their series A funding with some notable investors
In our ever-changing world, services such as insurance have surely got to change too at some point. Insurance for vehicles has been the same drag for years, but autonomous vehicles and the more popular than ever drones are something that regular insurance companies just aren’t fit for. Insurtech start-ups are filling the gaps that standard insurance companies just can’t fill. Two of the most notable UK based connected insurance-of-the-future companies are Zego, which has currently raised $201.7 million in funding, the other is Flock, which is changing the way insurance works and has just completed their series A funding with some notable investors.
In 2016 Flock began as an academic research project focusing on drones, and then began looking at real-time risk analysis for connected vehicles. In 2018, they launched the world’s first usage-based drone insurance which can be started at an hourly rate, and now protects thousands of drone pilots via their insurance policies. Then, in 2020 they expanded into the motor industry, and reinvented the way insurance works for commercial fleets. One of the main differentiating factors of this insurtech is that they connect into the telematics of vehicles, so the insurance only covers the vehicle when it’s moving, rather than when it’s remaining in a parking spot and unable to be the cause of any accidents. The fact that the insurance is based on a data-driven real-time approach enables them to price connected vehicles on a per-second basis, whilst also providing insights to owners of fleets to improve safety and prevention.
“Transportation is changing faster than ever, but the traditional insurance industry can’t keep up! The proliferation of electric cars, new business models such as ridesharing, and the emergence of autonomous vehicles pose huge challenges that traditional insurers just aren’t equipped for.” Says Ed Leon Klinger, CEO of Flock.
Flock’s Series A funding was led by Social Capital, a venture capital firm run by Chamath Palihapitiya- who is known for being the chairman of Virgin Galactic and a special purpose acquisition company (SPAC) investor, also an early backer of Tesla, Slack and Bitcoin. Other participants for this round also included Flock’s existing investors Anthemis and Dig Ventures. This round of funding raised approximately $17 million and brings Flock’s total investment funding to $22 million. As part of this round of funding, Flock’s Board of Directors will be joined by two new partners, Justin Saslaw (Social Capital’s Fintech Partner), and Ross Mason (the founder of Dig Ventures and MuleSoft- which SalesForce acquired in 2018).
The fast-moving company is responsible for the insurance of thousands of businesses spanning across Europe, including the BBC, Jaguar Land Rover and Netflix, and has gained attraction from some of the world’s leading venture capital funds. The foundation that Flock was built on was the fact that insurance companies aren’t prepared to expand to the hyperconnected and futuristic world that is constantly changing. Flock is unique as it uses a proprietary risk engine, that uses real-time data such as location data and vehicle sensors, local weather and traffic conditions, and accident data to accurately compute risks on a per-second basis. Flock is working to fill the gap between insurance industries today and the tech of the future, and building a global, completely digital insurance company for connected vehicles.
We expect to see many more notable investors taking interest in this venture, the future of insurance that is moving with the pace of the world rather than against it. Funding will be a major part of this as it will enable the company to cover more areas of the world and create a new experience for all kinds of vehicle insurance and customers buying into it.
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