InsurTech Setoo gets €8m funding from AXA
Written by Peter Walker
Setoo has closed an €8 million Series A funding round - bringing the total amount raised to date to €10.3 million - with AXA’s InsurTech startup studio Kamet being the main investor in this seed round.
The insurance-as-a-service company helps e-businesses create and sell protection tailored to consumer needs. Setoo quickly and easily builds and integrates products that are automatically embedded into the customer journey, with one-click underwriting directly on digital assets and personalised protection with automatic compensation.
By using targeted products, e-commerce sites and online travel agents are able to meet specific business goals.
The scalable platform covers risks that relate to exogenous events, like for an online travel agent selling connecting flights from multiple airlines, it can provide insurance to cover for missed flight connections if preceding flights are delayed or cancelled. Setoo sends an automated SMS to the consumer on behalf of the travel agent, explaining that a full refund has been provided and offering alternative flight suggestions.
To provide this service, Setoo opted to use the Managing General Agent model, so the company is licensed by the Financial Conduct Authority to distribute products on behalf of insurers in the European Union.
“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 at AXA. “Setoo’s platform enables digital businesses to create, through automation, new types of insurance that are more relevant to consumers.”
“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,” added Noam Shapira, Setoo’s co-chief executive.