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Octopus Ventures backs London vehicle insurtech Flock in $38M funding round

Flock founders
Image credits: Flock

At a time of economic uncertainty, when growth-stage funding for fintech and insurtech businesses are less common, London-based insurtech Flock, which uses real-time data to insure car fleet, scored $38 million in Series B funding led by a London VC Octopus Ventures, which backed insurtech Kita and fintech Delio.

The round also saw participation from CommerzVentures and existing institutional investors, including Social Capital, Dig Ventures, Anthemis, and Foresight Ventures that took part in its Series A round in 2021.

This funding round will allow the on-demand drone insurance techh startup to expand into new segments of the commercial motor industry and new geographies. The company will also double down on its data-driven approach to risk quantification and dynamic pricing, significantly increasing the size of its data science and engineering teams, and more than doubling the size of its UK team in the coming years.

Ed Leon Klinger, Flock’s CEO commented, “At Flock, we believe that insurers should help customers save time, money, and even lives. With our radically different insurance model, enabled by an immense amount of data, we hope to actively reduce the number of people needlessly killed or injured on the road.”

Malcolm Ferguson, Partner, Octopus Ventures, said, “Flock has a vision that can make the world safer not just for today’s vehicles but for the connected and autonomous vehicles of tomorrow. That vision of changing the world for the better is one we share at Octopus Ventures. That and the brilliant opportunity that Ed, Antton and their team are seizing are why we’re backing Flock to become a category-defining company in the fleet insurance space.”

Born as on-demand drone insurance tech

Flock was founded by Ed Leon Klinger and Antton Pena with the aim to make the world a quantifiably safer place by enabling and incentivising commercial motor fleets into safer driving habits. The founders were working on two academic research papers at Cambridge University and Imperial College London respectively when they stumbled on the idea of insuring drones only when they were flying.

The team launched the world’s first real-time insurance product for car rental platforms, courier companies, and corporate fleets in 2020. Eventually, Flock rapidly become a leader in the market. Now, it works with over 600 commercial fleet customers, including Jaguar Land Rover, Europe’s largest electric car subscription company Onto, and a third of the UK’s independent Amazon fleets.

Its real-time telematics-based approach has proven its ability to create safer roads. By leveraging telematics data to help customers understand risk and identify high-risk drivers and routes, Flock has reduced its customers’ crash frequency by 10%. This safer driving is rewarded with lower insurance premiums, which means safer fleets pay less. Flock leverages millions of miles of driving data, environmental data, accident, and crime data to accurately predict, price, and reduce vehicle risks.

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