Luko raises $22m as looks to create insurance 3.0

By John Reynolds on Tuesday 19 November 2019

Digital Banking

The French insurance start-up has signed up over 15,000 customers.

   Luko raises $22m as looks to create insurance 3.0
Image source: Pic of Luko founders Raphael Vullierme and Benoit Bourdel

Luko, the French insurance start-up, has raised $22m (£17m) and will use the funds to develop new technology and services and expand across Europe.

The Series A funding round was led by Accel, which provided €20 million (£17m), complemented by funding from Speedinvest and Founders Fund.

Luko, founded in 2017 in Paris, now has more than 15,000 customers and claims to be Europe's fastest growing insurance company.

The French start-up wants to benefit from what it says is eroded consumer trust about the current European $100 billion (£77bn) home insurance market. 

It says the market has been hit by “opaque” terms and conditions and a lengthy, convoluted process to sign up to home insurance.

Luko's proposition is to speed up the process of signing up to home insurance and making insurance claims.

Luko says that by signing up via its website, it "takes two minutes" to get insurance cover and "two hours to receive payment for a claim and two days for damage to be repaired".

It currently offers flat and home insurance for individuals and landlords in France.

Luko says its focus is on "creating insurance 3.0" and to use technology which will help avoid accidents by monitoring a home's front door, water supply and electric metre, using machine learning to analyse the data.

Part of the funds from the funding round will be used to develop technology to help detect accidents before they happen, Luko says, as well as developing others services and help it expand across Europe.

Raphael Vullierme (pictured), co-founder, Luko, said: “We believe consumers need fairer insurance options that they can clearly understand and that will bring them peace of mind. While customer churn is traditionally an industry problem, Luko’s is nearly nil, and our Net Promoter Score is five times the industry average."

 “This is the first step to our true endgame, avoiding home accidents altogether. We believe the future of homecare is in effectively protecting homes, and this investment will help us get there faster."

"We will use the new funding to accelerate our home protection technology development, expand from France across Europe and develop additional HomeCare Services.”

 

 

 

 

 

 

Sign up for our newsletters


Your daily 7am download of all things alternative finance and fintech.

Fintech and alternative finance headlines with an exclusive Editor's Note each week. Delivered Monday at midday.