FinTLV closes second $120m funding round
A leading Israeli-based venture capital investment firm has closed a US$120m second funding round. FinTLV, which was founded in 2016, is primarily focused on Insurtech and Fintech. they back some of the most promising companies in the US, Europe and Israel and invest across all stages.
The collective funds will be allocated to the global growth-stage of insurtech and fintech companies.
FinTLV said it has invested an estimated $50m as part of a $250m round in the $2bn valuated Next Insurance. This is in conjunction with Capital G – Google’s growth fund.
The fund invested in Unqork, which recently completed a financing round of about $200m led by BlackRock at an estimated valuation of $2bn.
Clal Insurance also invested $35m in FinTLV’s second fintech fund. The insurance enterprise led the round alongside Psagot Investment House and Poalim Capital Markets, who together raised $20m.
The move will see Clal doubling down on its investment in FinTLV. In June 2020, the company invested $30m as part of a $150m funding round for digital insurtech Israeli startup Hippo.
Clal Insurance CEO Yoram Naveh, said, “Today, Clal Insurance is managing its diverse private investment portfolio in technology sectors, which are estimated to be around $1.2bm. Among those investments are companies including DIVI, AMOUNT, Hippo and Pagaya. We value our partnership with FinTLV and are expanding our investments into a second fund.”
“The insurance industry is a huge industry undergoing a fundamental disruption,” FinTLV founding partner Gil Arazi said. “The revenue of the US insurance industry is five times larger than that of the banking industry; yet the technology used by most insurance companies is antiquated. The leading InsurTech companies drive this revolution. The unique understanding of this market as well as the rich network with many tens of insurance players around the globe give us access to the most lucrative investment opportunities in the field.”
Avishai Silvershatz, the managing partner of the fund, explained. “The Fund has recently made several substantial investments in leading insurtech companies. The fund led a $150m financing round in Hippo Insurance with an investment of $50m at a valuation of $1.5b.”
He continued, “In order to be a successful insurtech company, a company needs to have not only great technology but also the ability to cope with high regulatory barriers, to meet capital solvency requirement, to establish relationships with other players in the insurance ecosystem, to build expertise in risk assessment and on-line marketing, to have financial sophistication, to manage M&A activities and more.”
Flock and Aioi Nissay Dowa reinvent fleet insurance
UK-based insurtech Fock has announced today that it has entered a partnership with Asia’s largest insurance company, Aioi Nissay Dowa Insurance (AND-E) to “reinvent” commercial motor insurance for modern fleets. The two companies plan to change factors such as pricing and distribution.
Flock and Aioi Nissay Dowa have worked together over the past six months, developing two connected motor fleet insurance products which are currently available to self-drive hire, own goods, courier, and tradesperson fleets across the UK.
Part of the MS&AD Group, Aioi Nissay Dowa Insurance is one of Asia’s largest insurers, and the combination of its experience with Flock means that fleet managers can now access insurance tailored to their operations and designed to help improve safety over time.
Commenting on today’s news, Flock’s CEO, Ed Leon Klinger, said: “We believe the insurers of the future won’t simply pay claims; they will also actively incentivise and enable motorists to drive more safely and reduce risk. Together with AND-E, we are excited to be pioneering this approach. The AND-E UK team shares our vision of combining insurance with cutting-edge technology to create a safer, smarter world. This is only the beginning and I believe together we have the potential to transform how the world thinks about motor insurance”.
Using Flock’s technology to save money
Flock’s technology is able to connect to vehicle telematics and analyse millions of data points to accurately price policies based on both the size and safety of each fleet. This allows customers to be rewarded with lower per-mile prices for safer driving.
This announcement comes after the launch of Flock’s commercial motor division at the end of last year. The company says that since then, it has helped its initial customers achieve a saving of 25% over their previous insurance policy, as it begins to grow its large fleet insurance business. This includes the vehicle transportation firm, Engineius, Jaguar Land Rover’s ‘The Out’, and all-electric self-drive hire company, Elmo, all of which have signed up as customers.
Chief Executive Officer of Aioi Nissay Dowa Insurance, Warren Hetz, said: “The motor insurance industry is at a crossroads as insurance, technology, and mobility converge, and this is creating a world of opportunities to improve road safety as well as deliver more tailored customer experiences. Our partnership with Flock heralds a new era in commercial insurance”.
“By combining Flock’s cutting-edge technology with our significant underwriting expertise in connected vehicle technologies and insurance, along with our global distribution networks, we will be able to deliver an exceptional experience for fleets and their drivers”, he said.