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It ’s not every twenty-four hours that you hear about a large backing troll for a French startup in the current backing environs . ButNeat , a Paris - based insurtech startup , has managed to raise € 50 million ( around $ 55 million at current rally rates ) .
There is some fine print however . In addition to the traditional equity - for - immediate payment financial transaction , a portion of this financing round is a debt facility . It ’s around 60 % in equity and 40 % in debt , accord to the company . So it ’s more like a € 30 million turn with € 20 million in debt on top of that .
great avail other fellowship betray insurance intersection to their own customers . In insurance policy lingo , it focuses on affinity insurance contract bridge linked to another service or product .
For instance , if you ’re buy a smartphone , you might want to buy an insurance Cartesian product to check that you ’re covered in case of accidental drops . Other examples include traveling indemnity , concert slate insurance policy or guarantee annex for household appliances .
peachy focus on plant insurance products , which mean that partner retail merchant find indemnity customer for it . As a resultant role , retail merchant also get a commission on each policy product sold , but they do n’t have to dish out with the complexness of the insurance policy diligence now .
At the other end of the equality , Neat works with insurance and reinsurance caller so that they cover the risks directly . Neat acts as a manage oecumenical agent .
“ In our business , we usually say that we hold the troupe ’s chequebook , in the sense that we create our own rates , products , and insurance . At the same time , we outsource the risk to underwriter or reinsurers that intrust us , ” Neat cobalt - laminitis and CEO Maximilien Dauzet told TechCrunch .
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When it ’s time to create a new policy product , Neat does n’t have to go through its insurance cooperator because it has its own compliance and actuarial team . It creates insurance products with a modest , transparent commission built in for the startup . At the same time , electrical distributor get a commission and reinsurers can generate interests at the goal of the insurance policy food chain by work with Neat .
“ Despite some organic ontogenesis , indemnity companies were still facing a with child degree of discontent . And so , the actual resolution is to play together the entire economic value chain in a undivided society , so that we can see things from the same angle and ordinate the interests of our policyholders and our distributors , ” Dauzet said .
The independent welfare with this full - stack coming is that Neat can create a wide kind of insurance policy product because it is n’t a factor build on top of bequest system . For instance , traveling insurance should n’t be the same for the great unwashed who are 20 and those who are 60 years honest-to-goodness . It should be priced other than if you ’re depart on a camping trip-up in the countryside versus travel to another continent . Similarly , smartphone policy pricing should variegate depending on the gimmick and whether it ’s a refurbished mannikin or a new one .
Neat is also diversify its risk profile by going wide . “ We ’re pretty agnostic , cover 10 verticals . In fact , right from the start , Max and I made trusted that we were n’t focusing on just one vertical , ” Neat cobalt - founder and COO Fabien Cazes order . “ It allows us to mutualize the risk of exposure in terms of insurance , and we have a wad of synergies from a proficient point of view . ”
Neat extend indemnity products that come with credit and debit entry cards for Floa , locomotion indemnity for Pierre et Vacances , but also get a line aids indemnity for Afflelou and Krys . These partners can bundle insurance policy products with payment card or betray indemnity product as add - on purchases both online and in retail stores .
As a upshot , Neat presently function with 1,500 dispersion partners . combine , these partner have sold over 1 million indemnity merchandise . Hedosophia is leading the Series A round in the caller with Alma Mundi Ventures , ETFS , Athletico Ventures and existing investors also participating .
