Category: Startup Company
HQ: London, U.K.
Principal(s): Noam Shapira, Co-CEO; Eyal Gluska, Co-CEO
Funding: Setoo closed an €8M 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 personalised, claims-free insurance products. The platform delivers cutting-edge technological capabilities using AI, machine learning, parametric capabilities and APIs, enabling personalisation, real-time pricing and immediate compensation dispensed 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: Many other players provide point solutions. Setoo is unique with a generic parametric platform, allowing e-businesses to control the customer journey.
Competitive Edge: Setoo’s platform serves as a factory for e-businesses to independently build and deliver regulated, personalised, claims-free insurance products, within minutes! Consumers enjoy a new insurance experience, while e-businesses gain brand loyalty, competitive edge and increased ancillary revenues.
Market Opportunity: Insurance is an e-businesses opportunity: Millennials represent a huge potential as a third of the world's population, with spending power exceeding 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 $694B. Yet, airlines demonstrate a 12% from ancillary revenue, and a the majority of carriers still stand at a low rate of only 6.7%.
Early Customers: European online travel agents such as Invia Flights Germany