InsurTech firm Flock has raised £2.25m in Seed funding from a group of notable investors including Anthemis, Silicon Valley’s Plug and Play, Seed and Speed, and London VC Downing Ventures.
The London-based startup will use this money to launch its drone insurance platform internationally, as well as expand its London tech team. The company built a ‘pay-as-you-fly’ app called Flock Cover that allows drone pilots to insure their flights on an hourly rate.
Flock was founded in 2016 by Antton Peña and Ed Leon Klinger, who published papers on drone flight risks at Imperial College London and Cambridge University. Klinger explained the purpose of the insurance: “Our customers are now planning their flights carefully on the app, scheduling their take-off time to minimise their flight risks, and saving money as a result.
“On the Flock Cover app, it takes less than twenty seconds to get covered. Pilots pay for insurance only when they need it, and instantly receive a fully-customised policy for their flight. It flies in the face of traditional insurance,” he added.
Flock use data, such as hyperlocal weather conditions, population density and proximity to high-risk areas (such as airports), in order to personalise insurance policies. This allows the company to offer drone pilots a risk report for every flight, as well as allowing pilots to pre-emptively identify and plan for flight risks up to ten days in advance, rewarding safer flights with cheaper insurance premiums.
Flock Cover’s commercial drone insurance policies start from £5 per day, and offers its product for recreational pilots in the UK from £3 per day.
How fintech accelerators are driving Innovation
Over 1,000 commercial drone pilots allegedly use Flock Cover, and Klinger said he “couldn’t be happier” with the round’s closure. “The drone industry is growing exponentially, and we’re just getting started. This investment provides us with the backing and expertise we need from world-renowned investors, to meet this growth by expanding our own operations globally,” he added.
The company is planning to expand into other industries, too. “Our thesis at Flock is that Big Data can make insurance a simple, fair, even pleasant experience” Klinger added. “This needn’t be limited to one industry. Ultimately, we’re seeking to bridge the gap between today’s insurers and tomorrow’s technologies.”
Matthew Jones, director at Anthemis, concluded: “We are very excited to be working with the team at Flock. Ed, Antton and the team are a talented group of entrepreneurs and technologists, and Flock represents a great addition to our growing portfolio of insurance-related investments.
“The team has shared an exciting long-term vision with us – we are looking forward to supporting them through this next phase of growth, and are ready to help make that vision a reality,” he concluded.