Connected vehicle and drone insurtech startup Flock has received $17 million in its series A funding round.
Flock provides exposure-based insurance for fleets of commercial vehicles, including drones, cars, and vans. Unlike traditional insurers, Flock offers flexible pricing based on actual exposure to risk. The policies can be bought and adjusted for price in minutes.
Flock has a proprietary “risk engine” which ingests huge amounts of real-time data such as vehicle sensor and location data, hyperlocal weather, traffic conditions, and accident data, to accurately quantify risks on a per-second basis.
“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,” says Flock CEO Ed Leon Klinger.
“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.”
The new funding is allowing Flock to grow its team and is currently hiring for more than 60 roles across all its functions. It’s also planning to expand its car insurance products into multiple European countries as well as diversifying into new product lines.
Alongside car insurance, Flock will insure your drone(s) and fleets of commercial vehicles. It also gives customers free insights into how they can reduce their own risks and, consequently, lower premiums.
Despite only launching its commercial motor fleet insurance it has brought on big customers including The Out, Jaguar Land Rovers subscription service, and Virtuo an on-demand car rental app.
Flock also claims to control more than 35% of the UK’s commercial drone insurance market and covers pilots flying for the BBC, Netflix, and the NHS.
“Flock is bridging the gap between today’s insurance industry and tomorrow’s transportation realities,” says Chamath Palihapitiya, CEO of Social Capital who led the funding round. “Flock has the potential to help unlock and enable a truly autonomous world, and even save lives. We’re excited to be a part of their journey.”