The investment will allow the insurtech to expand into new territories and new areas of commercial fleet, says chief executive
London-based insurtech Flock has raised $38m (£31m) in series B funding via an investment round led by Octopus Ventures.
Joining Octopus Ventures in the funding round are CommerzVentures and existing institutional investors including Social Capital, Dig Ventures, Anthemis and Foresight Ventures.
This funding round will allow the digital fleet insurtech to expand into new segments of the commercial motor industry and new geographies, according to chief executive Ed Leon Klinger.
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, it said.
This will include more than doubling the size of its UK team in the coming years.
Leon Klinger said: “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.
“The best possible claim experience is no claim at all – we want to help our fleet customers predict and prevent crashes, before they even take place”.
Safer world vision
Leon Klinger said that Flock has attracted investors due to its solid fundamentals, team and product market fit – for example, Flock has grown revenues by more than 30 times since its series A funding round in 2021.
Malcolm Ferguson, partner at 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 Leon Klinger, Antton Pena and their team are seizing are why we’re backing Flock to become a category-defining company in the fleet insurance space.”
Flock was born from academic research into real-time risk analysis, undertaken by its founders Leon Klinger and Pena.
The insurtech aims to make the driving safer by enabling and incentivising commercial motor fleets into safer driving habits.
The team launched its real-time insurance product for car rental platforms, courier companies and corporate fleets in 2020.
It now works with more than 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.
Flock’s real-time telematics-based approach has also reduced its customers’ crash frequency by 10%.
This safer driving is then rewarded with lower insurance premiums.
- Insurance Times has converted dollar amounts into pounds using an exchange rate of $1.13 = £1, which was correct as of 1 February 2023.