An ethical model to reinvent insurance
Launched in 2018 by Raphaël Vullierme and Benoît Bourdel, the French nugget that intends to revolutionize the insurance industry started from a very simple observation: there is a flagrant lack of trust between policyholders and their insurer. In order to recreate trust and have a positive impact, the two co-founders have set up an unprecedented ethical system in Europe: the Giveback. The principle is simple: 30% of premiums are deducted to finance the operation of the company, claims management and R&D. 70% of the premiums are placed in a common pot dedicated to the reimbursement of claims and if there is any money left at the end of the year, it is donated to the associations chosen by the insured. The company thus intends to protect itself against conflicts of interest. Raphaël Vullierme, CEO and co-founder: “We have no interest in badly compensating our policyholders because the money does not go into our pocket at the end. This system makes it possible to realign everyone’s interests”.
A resolutely ethical model that has resonated with consumers. In November 2019, the insurance covered 20,000 people. A year later, the number of people insured has doubled to more than 100,000.
Changing the Paradigm: From Response to Loss Prevention
If the model has convinced, the insurance goes beyond this ethical aspect and has other arguments to make. And in particular its main ambition: to prevent disasters. Benoît Bourdel, CTO and co-founder: “We do not sit idly by waiting for you to have a disaster. We are developing protection technologies and new services to prevent problems that could happen to your home.” Concretely, the insurance is working on the design of connected sensors that will prevent fires, burglaries and water damage. In November, it also announced the creation of the first home teleconsultation service, modeled on medical teleconsultation. Policyholders can carry out a completely free consultation with a building expert Luke, which carries out a check-up of your home to anticipate any problems that could arise, and provide you with DIY advice on the maintenance of your home or your planning projects. It is an understatement to say that the success was there, with more than 1000 consultations recorded in the 15 days which followed its launch. A complete range of services that is appealing.
Fundraising of 50 million euros to pursue growth in Europe
As competitors enter the market, Luko does not intend to stop there. The scale-up announced in early December a fundraising of 50 million euros, in order to continue to improve the experience offered to its customers, expand its range of services for the home, develop its network of craftsmen and open in another European country. Raphaël Vullierme: “This fundraising will allow us to achieve very concretely our vision: to make European homes safer and healthier. The new products and services that we intend to launch are intended to enable our policyholders to have the spirit quieter and even better at home. Today more than ever, people have realized the importance of well-being at home “. A product that responds to a crying need for transparency, an ethical model at heart and a range of services designed by and for consumers: neo-insurance seems set to continue its exponential growth.
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