InsurTech Flock has raised £12.2 million funding to ‘supercharge’ its expansion into new geographies and product lines.
Flock provides exposure-based insurance for fleets of commercial vehicles, including drones, cars, and vans.
It says that in contrast to traditional annual policies, which are often restrictive and inaccurately priced, Flock’s products are fully flexible and priced based on actual exposure to risk.
Its risk engine ingests huge amounts of real-time data such as vehicle sensor and location data, hyperlocal weather, traffic conditions, and accident data, to accurately quantify risks on a per-second basis.
It also gives its customers free insights into how they can reduce their own risks – for example, by highlighting their most high-risk drivers and routes – and when they improve their safety, rewards them with cheaper prices.
The Series A round was led by Social Capital, the Californian investment firm run by Chamath Palihapitiya, a renowned tech investor, Chairman of Virgin Galactic, and an early backer of Slack, Tesla, and Bitcoin. Existing investors Anthemis and Dig Ventures also participated.
The company says the funding marks a major milestone as it builds a global, fully digital insurance company for connected and autonomous vehicles. In just one year, Flock’s revenues have grown 38x.
“Transportation is changing faster than ever, but the traditional insurance industry can’t keep up,” said CEO Ed Leon Klinger.
“The proliferation of electric cars, new business models such as ridesharing, and the emergence of autonomous vehicles pose huge challenges that traditional insurers just aren’t equipped for.”
“Everything we do is led by our mission to make the world a smarter, safer place. We strongly believe that the insurance company of the future won’t just pay claims; it will actively help its customers avoid them in the first place.”
The company plans to hire for 60+ roles across every function, expand its motor product into multiple European countries and develop entirely new product lines.
Chamath Palihapitiya, CEO of Social Capital, said: “Flock is bridging the gap between today’s insurance industry and tomorrow’s transportation realities.
“Flock has the potential to help unlock and enable a truly autonomous world, and even save lives. We’re excited to be a part of their journey.”