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Home / Insurance / British drone insurance company Flock raises $ 17 million

British drone insurance company Flock raises $ 17 million



(Reuters) – British drone insurer Flock has raised $ 17 million from investors in early-stage financing led by venture capitalist Chamath Palihapitiya Social Capital, Flock said on Thursday.

Flock started by insuring commercial drones and adding cars and vans last year. It provides so-called usage-based insurance, adjustment of premiums according to real-time information such as weather conditions and distance traveled.

Trends such as commuting and same-day delivery require new types of insurance, CEO Ed Leon Klinger said, as the world also looks forward to driverless cars.

"These customers are changing very, very fast, but the insurance world has not really adapted," he said.

Flock, which started in 201

8, said that its drone insurance book accounted for more than 35% of the UK commercial drone market, with customers including the BBC, Netflix and the National Health Service. Car insurance customers include Jaguar Land Rover.

"Flock has the potential to help unlock and enable a truly autonomous world and even save lives," said Social Capital CEO Palihapitiya, who is also chairman of the space tourism company Virgin Galactic Holdings.

Mr. Klinger declined to give a rating to Flock but said it grew rapidly and could seek additional funding from investors next year.

The COVID-19 pandemic had stimulated demand for its product, as fleet executives were able to save on insurance costs when business shutdowns left cars unused, Klinger said.

Flock currently has about 20 employees but employs 60 more and plans to expand its car business to Europe, he said.

Insurtech, a fast-growing segment of financial technology, or fintech, the industry, has benefited from investors' interest in start-ups, where the traditional insurance industry was considered slow to change and adopt technology.

Global insurtech financing exploded to $ 7.4 billion in the first half of the year, making 2021 a record financing year already, said insurance broker Willis Towers Watson PLC on Thursday.

Existing flock investors Anthemis and Dig Ventures also participated in the Series A financing round. Catalog

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