Faye hopes to do for travel insurance what Lemonade did for general insurance
While (former) startups like Lemonade came along to attack the tired world of insurance, the travel insurance market is now coming in for the same treatment from the likes of Safetywing (covered by TC here) and Battleface.
In an ideal world, travel insurance would be easier to understand, would pay out quickly when things go wrong, and operate almost like Apple Pay or Google Pay in its simplicity. New ‘whole-trip travel insurance’ startup Faye – which exited stealth mode last month – hopes to bring that kind of vibe with its approach, and now it’s raised backing to do it.
The startup has pulled in $8 million in a seed funding round led by Viola Ventures and F2 Venture Capital. Also participating was Portage Ventures, Global Founders Capital (GFC) and former NBA player Omri Casspi.
It’s fair to say that most travel insurance products are not so much built for consumers as for distributors, where jargon-filled add-ons abound. Faye claims its approach is much more simple, where customers are asked 6 questions in order to find the right plan.
The platform covers trips, health, belongings, and pets via an app that sends alerts, has 24/7customer support, and enables digital claims filing, and electronic transfers of reimbursements to its Faye Wallet.
Co-Founder & CEO, Elad Schaffer said in a statement: “Travel insurance has become synonymous with lengthy, jargon-filled policies that leave travelers confused rather than well-informed… Faye is hitting the market as a solution to these pain points, at a time in which consumers are planning to travel more than ever before and are seeking solutions to look after them while on the road.”
Faye will also cover travelers if they contract COVID-19 pre-trip, and cancellations (subject to the terms of the plan), as well as coverage for emergency medical expenses and trip interruption
Omry Ben David, General Partner, Viola Ventures commented: “Faye is re-inventing the category of consumer travel insurance in the U.S. where data isn’t leveraged yet for bespoke, price-optimized coverage in an industry with very favorable growth characteristics and unit economics.”
The Faye team is comprised of Jeff Rolander (formerly at Allianz), Moran Treiser (formerly Lemonade) and Lauren Gumport (formerly Guesty).