Given all the scams of the last few years, consumers are increasingly unwilling to spend money on what they see as irrelevant insurance products. That means many business have lost out on revenue.
Setoo is a UK startup which solves this problem, by helping online businesses to build and integrate simple insurance products tailor-made to the customer and automatically embedded into the customer journey.
Today Setoo announces it has closed an €8million ($9.3 million) Series A funding round, bringing the total amount raised to date to €10.3million ($12 million). The main investor in this and the seed round is Kamet, AXA’s ‘Insurtech’ startup studio.
Commenting, Noam Shapira, Setoo’s Co-CEO said: “Setoo stands for simplicity – in French ‘c’est tout’ means ‘that’s it’. My Co-founder Eyal Gluska and I chose the name to symbolise how simple and quick it is to create effective new protection products using the platform, and the simplicity of the products created for the consumer. 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.”
An example of how it works might be the instance of an OTA selling connecting flights from multiple airlines. Using Setoo, it can provide insurance to cover for missed flight connections if preceding flights are delayed or cancelled. In these situations, Setoo sends an automated SMS to the consumer on behalf of the OTA, explaining that a full refund has been provided and offering alternative flight suggestions. In another scenario, a tour operator selling ski holidays could insure against a lack of snow, fully automating payment and removing the hassle of the claims process for the customer.
Setoo is also licensed by the UK”s FCA to distribute products on behalf of insurers in the EU.
Commenting, Guillaume Borie, Chief Innovation Officer of the Group, AXA said: “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. Setoo’s platform enables digital businesses to create, through automation, new types of insurance that are more relevant to consumers.”
Setoo’s key competitors include ZhongAn, Moonshot and Qover. It differentiates from these competitors by providing its customers with the means to build protection products for themselves, quick and easy set-up, and its focus on exogenous events that could ruin the customer journey.