Travel and tourism industry took a hard hit due to the coronavirus. But with Europe on the path to recovery, there’s a steady growth in the travelling sector. While local flights are not heavily impacted, international flights could be delayed or even cancelled. Flight insurance is always a good idea in such cases but the associated time and paperwork can be difficult to deal with.
Tackling this issue is the France-based insurtech startup Koala. The startup is reinventing travel insurance with its data-driven products that proactively alert travelers about any disruption and pay-out instantly, no questions asked. The startup has now closed its seed round of €1.6 million. Here’s what you need to know about the rising startup.
Instant payout for flight disruptions, no questions asked!
Claiming insurance for something as small as a missed flight can turn into a headache due to the procedure and paperwork involved. The startup Koala aims to lessen the burden of getting pay-out by streamlining the experience and going fully digital. The company’s service is called Disrupted Flight Insurance and as the name suggests, it compensates travellers for delayed or cancelled flights. The company monitors the journey of all its clients and offers immediate pay-out when a disruption comes up, without asking any questions.
Ugo Weyl, Co-Founder and CEO at Koala says, “Every year, hundreds of millions of passengers suffer flight disruptions and face an uphill battle to claim compensation. Travellers face antiquated claims procedures, with only 15% of customers receiving a pay-out. We felt this was unfair, a delay is a delay and customers should be compensated 100% of the time.”
Flight disruptions are said to cost airlines about €4 billion every year. Koala’s offering is supposed to benefit both operators and consumers with reduced burden on airline’s customer service and hassle free coverage respectively.
Fresh funding to help Koala go big
Koala was launched at the end of 2018 by Ugo Weyl, Léo Tordjman, Antony Mechin and Julien Weyl. In a short span of time, the company has secured €1.6 million in its seed round, which was led by London based incubator and fund Insurtech Gateway. Playfair Capital, Techstars Ventures, and some private investors also participated in the round. The company’s immediate focus is on team expansion by recruiting 15 people and accelerating business and product development.
Currently, travellers can use Koala DIsrupted Flight protection via Sky-Tours, an online travel agency. Over the next 3 months, Koala will be available with 2 airlines and 4 travel agencies, however, the company is yet to reveal the names of its partners. This month, Koala is gearing up to introduce a new product that issues cash compensation on the spot and again, without asking any questions.
Ahead of its expected IPO pricing later today, SoftBank-backed insurtech startup Lemonade has raised its expected price range. After initially targeting $ 23 to $ 26 per share in its debut, Lemonade now intends to sell its equity for $ 26 to $ 28 per share.
Read more here.
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