AXA-backed insurtechs merge to create embedded insurance global leader
Embedded insurance-focussed Setoo has agreed to merge with insurtech startup Pattern that is coming out of stealth mode. The joint company will have the insurance backing of AXA, Spinnaker Insurance Company, Wakam and others.
Setoo operates as an insurance managing general agent (MGA) in the EU and the UK, while Pattern offers innovative parametric and traditional insurance products including coverages for utility outages, weather incidents and more. Pattern is in the process of finalising operation deployment as a US MGA.
Through their merger, expected to close near the end of August, the companies aim to create a 'one-stop-shop' for embedded insurance products. The joint company will operate across Europe and the US under the name of Pattern.
Pattern said it will help businesses generate new revenue streams and increase customer satisfaction through tailored insurance products, transforming all of their online transactions into protected experiences without the need to be an insurer.
“Our modern world comes with a growing set of universal risks, and the needs of consumers and businesses have drastically changed in the last several years as online transaction growth continues to accelerate,” said Meitav Harpaz, CEO and founder of Pattern Insurance Services (pictured). “We believe that offering frictionless access to personalised insurance, tightly coupled with the core product, experience or service sold, is key to increasing consumer confidence and transaction volumes.”
Noam Shapira, co-founder and co-CEO of Setoo, believes now is the perfect time for this merger. He said: “Following the COVID pandemic, global markets were severely altered, and consumer concerns of unprotected risks grew even bigger. Our customers who use the platform to offer our innovative protections are already seeing accelerated recovery ahead of the rest of the market. We are aligning efforts with Pattern to bring back consumer confidence when making online purchases and we are excited to accelerate our vertical and geographical expansion.”
“Pattern’s embedded insurance creates endless opportunities for consumers, online businesses and insurers to seamlessly and effortlessly transact in real-time with complete alignment across multiple geographies,” said Assaf Wand, First Board Member of Pattern, insurtech industry veteran and CEO of Hippo. “Pattern has vast potential ahead of them, with a strong team, and innovative technology that is massive. I simply had to hop on board, as the first board member and only board seat I currently hold, to help support, and guide the company on its path to success.”
Since inception, the two companies have jointly raised $25 million in funding, including a recent seed round of $10 million for Pattern. The joint company is backed by Kamet Ventures, the venture builder where Setoo was incubated, Comcast Ventures, MS&AD Ventures, Foundation Capital, FinTLV, TechAviv Founder Partners, Kli Capital, Abstract Ventures, and others.
According to Sheena Jindal, principal of Comcast Ventures, “With this merger, Pattern’s team is accelerating the deployment of their embedded solution by exploring new geographies and products, bringing insurance a few steps closer to the needs of today’s consumer around the world.”
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