Category: Startup Company
HQ: London, U.K.
Principal(s): Noam Shapira, Co-CEO; Eyal Gluska, Co-CEO
Funding: Setoo closed an €8 million Series A funding round led by Kamet, AXA's Insurtech startup studio.
Product Description: Setoo's insurance and protection-as-a-service platform empowers e-businesses to offer an exceptional customer journey with new types of tailored, claims-free insurance and protection products. The platform delivers cutting-edge technological capabilities using AI, machine learning, parametric capabilities and APIs, enabling personalization, real-time pricing and immediate compensation delivered automatically, while remaining compliant with the Insurance Distribution Directive (IDD) and GDPR.
Business Model: Setoo's business model is based on a per-policy distribution margin. Setoo's optimized pricing method takes into account risk and real-time events. e-businesses can decide the markup on top of Setoo's price, which includes the cost for the consumer and compensation. The price can be defined as a percent of the ticket price, or a fixed price.
Competitors: Other players provide point solutions. Setoo is unique with its generic parametric platform, enabling e-businesses to control the customer journey.
Competitive Edge: Setoo's platform serves as a factory for e-businesses to independently build and deliver personalized, claims-free insurance and protection products, within minutes! Consumers enjoy a new insurance experience, while
e-businesses gain brand loyalty, competitive edge and increased ancillary revenue.
Market Opportunity: Global travel insurance is expected to reach $35B by 2025. Travel insurance is the biggest contributor to global growth and will hit 4.7% CAGR by 2028. Millennials represent a third of the world's population, with a spending power that exceeds any other generation. Millennials spend £150B on tourism annually, yet 43% do so without insurance! Online travel sales are set to reach over $694B, yet airlines see only 12% from ancillary revenue; and a majority of carriers still stand at 6.7%.
Early Customers: Online travel agents such as Omio, lm group, Invia Flights Germany, campings.com