Sompo-backed drone insurer attracts funding from large investors
Drone insurer Flock, which is backed by Bermuda-based re/insurer Sompo International, has secured $17 million in its latest funding led by venture investor Chamath Palihapitiya's firm Social Capital, chairman of Virgin Galactic, and an early backer of Slack, Tesla, and Bitcoin.
Existing investors Anthemis and Dig Ventures also participated in the round.
Flock, which provides data-driven insurance solutions to commercial drone operators, believes the investment will take it one step closer to "reinventing insurance for connected and autonomous vehicles".
The start-up plans to use the proceeds to supercharge its expansion into new geographies and product lines, as it seeks to build a fully digital insurance company for connected and autonomous vehicles.
Sompo International entered into a partnership with Flock earlier this year to provide capacity for its exposure-based drone insurance programme, which could be used to cover drone cargo deliveries, flying taxi passenger flights and drone swarm shows.
“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," said Palihapitiya, CEO of Social Capital.
Ed Leon Klinger, CEO of Flock said: “Transportation is changing faster than ever, but the traditional insurance industry can’t keep up! 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.”
“Modern fleets need an equally modern insurance company that moves as fast as they do. Commercial motor insurance is a $160Bn market, crying out for disruption. The opportunity ahead of us is enormous.”
Leon Klinger added: “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. That’s the future we’re building at Flock. We’re delighted that Social Capital has decided to support us, and join us for the ride.”