Flock Raises $17M Series A Funding - Connected Car Insurance

The Future of Vehicle Insurance: A Connected Approach

Recall the depiction of self-driving cars in the film “Minority Report,” seamlessly navigating urban environments. A practical consideration that often arises is the question of insurance coverage in such a scenario.

Several startups are actively developing on-demand, connected insurance solutions for the next generation of vehicles. Among these are U.K.-based Zego, having secured $201.7 million in funding, and Flock.

From Drones to Commercial Vehicles: Flock's Evolution

Initially stemming from an academic research project focused on drones, Flock initially specialized in providing insurance for unmanned aerial vehicles. The company subsequently expanded its services to encompass commercial vehicle insurance.

A key differentiator for Flock lies in its integration with vehicle telematics. This allows insurance coverage to be activated only when the vehicle is in motion, eliminating coverage during periods of inactivity when accidents are impossible.

Series A Funding and Board Expansion

Flock has recently completed a $17 million Series A funding round, spearheaded by Social Capital, the investment firm led by Chamath Palihapitiya – known for his involvement in SPACs and as chairman of Virgin Galactic.

Existing investors, Anthemis and Dig Ventures, also participated in this round, bringing Flock’s total funding to $22 million. Justin Saslaw, fintech partner at Social Capital, and Ross Mason, founder of Dig Ventures and MuleSoft, have joined Flock’s board of directors.

Addressing the Limitations of Traditional Insurance

“The transportation sector is undergoing rapid transformation, yet the conventional insurance industry is struggling to adapt,” stated Ed Leon Klinger, CEO of Flock.

“The increasing prevalence of electric vehicles, innovative business models like ridesharing, and the development of autonomous vehicles present significant challenges that traditional insurers are ill-equipped to handle.”

He further emphasized, “Contemporary fleets require an equally modern insurance provider capable of responding with agility. The commercial motor insurance market, valued at $160 billion, is ripe for disruption, presenting a substantial opportunity.”

Social Capital's Vision for Flock

Chamath Palihapitiya commented, “Flock is effectively bridging the divide between the current insurance landscape and the realities of future transportation.”

“By leveraging real-time data to accurately assess vehicle risk, Flock is addressing the needs of our increasingly connected and rapidly evolving world. The company possesses the potential to facilitate the advancement of autonomous technology and even enhance safety. We are pleased to support their progress.”

Flexible Integration Strategies

In a conversation with TechCrunch, Klinger detailed the company’s success in connecting with vehicle telematics APIs, or through customized integrations with existing providers and original equipment manufacturers (OEMs).

“We have developed an integrated approach, collaborating with some partners and creating bespoke integrations with others,” he explained. “Our adaptability is a core strength, and we prioritize flexibility in our integration methods.”