Drone Insurance Start-Up Flock Raises £2.25 Million
London-based drone insurance start-up Flock has announced that it has raised £2.25m in a seed funding round from a variety of high-profile investors.
The funding round was led by Anthemis, a venture capital firm focused on Fintech and Insurtech investments, with other investors including Silicon Valley’s Plug and Play, Seed and Speed, and London VC Downing Ventures who led Flock’s pre-seed round in 2016, along with a number of angel investors.
Flock will use the money raised in this round to launch its drone insurance platform internationally, as well as expand its London tech team.
Flock emerged in 2016 from academic research undertaken by its Founder, Antton Peña, and CEO, Ed Leon Klinger, who published papers on drone flight risks at Imperial College London and Cambridge University, respectively.
Flock’s first product, Flock Cover, is a ‘pay-as-you-fly’ insurance application that allows drone pilots to insure their flights for as little as one hour from their smartphone.
The Flock Cover app aggregates real-time data, including hyperlocal weather conditions, population density, proximity to high-risk areas (such as airports), and more.
Flock’s algorithms then analyse this data to quantify the risk of any given drone flight in a matter of milliseconds.
By partnering with Allianz, the world’s leading aviation insurer, Flock Cover converts this quantified risk metric into an intelligently and fairly priced insurance premium, allowing pilots to purchase hourly insurance policies for their flights.
Over 1,000 commercial drone pilots now use Flock Cover, which launched earlier this year in the UK, representing a dramatic departure from flat-rate ‘annual’ premiums in favour of Flock’s on-demand, flexible alternative.
The Flock Cover app offers ‘pay-as-you-fly’ drone insurance to commercial and recreational pilots.
Ed Leon Klinger, Flock’s CEO, said:
“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.”
Matthew Jones, director at Anthemis said:
“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.”