Home insurance platform Luko has bagged €20m in Series A funding to support its expansion across Europe.
Global venture capital firm Accel led the round, with contributions also coming from Founders Fund and Speedinvest.
Founded in 2017, the InsurTech startup offers home and flat insurance for individuals and landlords in France. In just ten months of operation, it has attracted over 10,00 customers.
It claims it takes two minutes to receive coverage, two hours to get a payment for a claim and two days for damage to be repaired.
The company is building a home protection technology stack which will aim to pre-empt and avoid insurance accidents to begin with. The solution will monitor a home’s front door, water supply pipe and electric meter. Machine learning will analyse this to help prevent flood, fires and burglary.
Luko co-founder Raphael Vullierme said, “We believe consumers need fairer insurance options that they can clearly understand and that will bring them peace of mind. While customer churn is traditionally an industry problem, Luko’s is nearly nil, and our Net Promoter Score is five times the industry average.
“This is the first step to our true endgame, avoiding home accidents altogether. We believe the future of homecare is in effectively protecting homes, and this investment will help us get there faster. We will use the new funding to accelerate our home protection technology development, expand from France across Europe and develop additional HomeCare Services.”
The insurance company charges a flat fee which is then used for claims management, operation costs and paying claims. If there is any money left over, it is donated to charities chosen by customers through its Giveback Programme.
In accordance with the investment, all contributors to the round have signed onto Luko’s social and environmental impact mission.
As part of the deal, Accel principal Luca Bocchio will join the Luko board of directors.
Speaking on the deal, Bocchio said, “Insurance is still largely a very traditional industry. With only eight per cent online penetration, the whole industry is poised for change. Consumers have suffered long enough with poor home insurance options, and Luko is bringing a new option to market with fairness at its core.”
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