Event: 2021 Phocuswright Conference
HQ: Palo Alto, CA U.S.
Principal(s): Meitav Harpaz, CEO; Noam Shapira, Co-Founder; Eyal Gluska, CTO; Pierre-Olivier Desualle, Chief Insurance Officer
Funding: Pattern with Setoo has raised $25 million funding, including a recent $10 million seed round.
Product Description: Patterns insurance and protection-as-a-service platform empowers e-businesses to offer an exceptional customer journey with new types of personalized, insurance and service products. The platform delivers cutting-edge technological capabilities using AI, machine learning, parametric capabilities and APIs, enabling personalization, real-time pricing and immediate compensation dispensed automatically, while remaining compliant with the Insurance Distribution Directive (IDD) and GDPR.
Business Model: Pattern's business model is based on a per-policy distribution margin. Our optimized pricing method takes into account risk and real-time events. E-businesses can decide the markup on top of Setoo’s price. The model is commission based where the e-Business can define commission up to a certain limit in compliance with regulation.
Competitors: Many other players provide point solutions. Setoo is unique with a generic parametric platform, allowing e-businesses to control the customer journey.
Competitive Edge: Our platform serves as a factory for online travel & leisure businesses to build & deliver regulated, personalized, claims-free insurance products, within minutes! We work with agents, airlines, destinations, hotels & tours/activities. Customers enjoy a new insurance experience. Brands gain loyalty, a competitive edge & increased ancillary revenue.
Market Opportunity: Insurance is an e-businesses opportunity: Millennials represent a huge potential as third of the world’s population, with spending power exceeds any other generation.
Millennials spend £150 billion on tourism each year. Currently, 43% do so without insurance!
The online marketplace is thriving; total web-based travel sales are set to reach more than $694 billion. Yet, airlines demonstrate a 12% from ancillary revenue; where the majority of carriers still stand at a low rate of only 6.7%.
Early Customers: LastMinute.com, Amadeus, Liknoss, Invia, Issta, OYO and Bidroom.