The New York-based travel insurance startup, which brought its first product to market just 12 months ago, has now raised a total of $18 million.
Other investors participation in the Series A funding event were existing contributors, Viola Ventures and F2 Venture Capital, Menora Tech, and also, Mike Nelson, the former CEO of Global Travel Insurance at Allianz.
According to reports, Faye’s proactive and holistic travel insurance product has already delivered unmatched value for travelers embarking from the US, resulting in widespread adoption, consistent 5-star reviews and a significant number of customers already traveling with Faye multiple times in under a year.
Faye is the second startup founded by serial entrepreneurs and travel enthusiasts Elad Schaffer (CEO) and Daniel Green (CTO). In the coming months, the duo plans to dedicate this capital injection to fuel growth, develop new insurance offerings, support scale through automation and seamless integrations, and forge new partnerships with top brands and distribution partners.
The insurtech has made additional enhancements to its offering since its initial launch, releasing new coverage add-ons including Adventure & Extreme Sports and Vacation Rental Damage Protection. Now available in 48 states, including New York, California, Florida and Texas, Faye plans will soon be available nationwide.
Faye’s predicted growth trajectory is robust, say executives
Faye’s leadership team have also said they expect the insurtech to quadruple its revenue in 2023 alone, having earned millions in premiums in its first year in the market. The company also plans to more than double its pool of travel advisors and distribution partners which is already in the hundreds.
The funding news comes shortly after Faye launched its Travel Advisor Portal, a one-stop-shop where travel advisors and agencies can easily offer, learn about and manage travel insurance with Faye.
Furthermore, the insurtech has also recenty launched a newly developed API to enable seamless integration with travel distributors who wish to offer a new level of travel protection to their customers, fully embedded into their offerings.
Speaking about the $10 million capital injection, Faye Co-Founder & CEO, Elad Schaffer, explained: “Faye fundamentally views travel insurance differently. Until Faye, travel insurance was often thought of as a reimbursement service. Faye’s approach combines travel insurance with real-time assistance, trip alerts, a 24/7 concierge and even financial support. Our role is to help ensure that you have a smooth adventure that’s memorable for the right reasons. We’ve built an offering that travelers will want to use for life, so bringing Faye along is just as obvious as bringing your passport. This approach is working: we continue to see rapid growth in travelers using Faye, and coming back for more – month over month.”
Rise in travel insurance sales indicate a busy summer travel season
The boom in travel insurance purchases across the industry supports what will be an incredibly busy season of summer travel. Faye anticipates continued consumer frustration – from crowded airports to staff shortages – and thus an increase in trip protection purchases and reliance on providers that go the distance to offer both insurance and around-the-clock assistance.
Sidra Ahmed, Investment Director, Munich Re Ventures, who has also joined Faye’s board of directors, said that with the end consumer in mind, Faye provides transparent, digitally-integrated comprehensive coverage, and a real-time approach to managing the many “potential hiccups” that can occur during travel. “Faye has successfully married the worlds of travel, insurtech and fintech to seamlessly enable consumers to protect their travel investments. We are excited to join the Faye team on their journey – pun intended.”
Mike Nelson, former CEO, Global Travel Insurance at Allianz:, added that travel insurance is a fast-growing industry with evolving needs in the areas of customer experience, product relevance and digital innovation. He said: “The team at Faye has impressed me with their vision and accomplishments and has already attracted enormous interest from partners and travel distributors, just one year in the market, and amid economic uncertainty; that’s no easy feat. It was a no-brainer to deepen my support of this top-notch team and product, going from advisor to both advisor and investor.”
Source: PR News Wire
Join Faye and Munich RE at Insurtech Insights 2023 in New York
Join Faye and a team of experts from Munich Re’s wide, corporate portfolio at Insurtech Insights 2023 in New York, at the Javits Center on June 7th and 8th. The speakers will be covering several hot topics in the insurance industry. You can find out more about our speaker line up – and registration here.
1) Speaker: Ben Bergsma, Principle, Munich Re Ventures
Session: Insuring Against Climate Change: The Role of Climate Tech
2) Speaker: Massimo Cavadini, Senior Executive Partner | Global Leader of Insurance Solutions, Munich Re
Session: Balancing Art and Science: The Bionic Approach Transforming Underwriting Capabilities
3) Speaker: Tobias Eilken, InsurTech & Cyber Innovation Strategist, Munich Re
Session: The Technologies Optimizing the Customer Journey
4) Speaker: Robert Parisi, Head of Cyber Solutions, Munich Re Americas
Session: Embracing Innovation: How Insurers and Big Tech Can Collaborate
5) Speaker: Yogis Nijhon, Head of Strategic Partnerships, Munich Re Ventures
Session: How Incumbents Innovate With Startups
6) Speaker: Liz Kramer, Chief Underwriting Officer, Munich Re
Session: Women Who Are Changing the World
7) Speaker: Falk Albers, Partner, Insurance Solutions, Global Consulting, Munich Re
Session: Reach and Retain: Why UBI Will Win You Customers Tomorrow and Beyond
8) Speaker: Courtney Hill, Head of Digital Partners North America, Munich Re
Session: How Data Partnerships Are Reimagining Underwriting
9) Speaker: Elad Schaffer, Co-Founder and CEO of Faye
Session: The Technological Take-Off Revolutionising Travel Insurance
