Marking a tipping point in demand for proactive travel insurance packed with value
New York, NY (May 23, 2023) – Travel insurance startup Faye is pleased to announce it has raised $10M in Series A funding just a year after launching its product in the U.S., bringing the company’s total funding to $18M. The round was led by Munich Re Ventures along with existing investors Viola Ventures and F2 Venture Capital. Additional investors include Menora Tech and Mike Nelson, former CEO of Global Travel Insurance at Allianz.
Faye’s proactive and holistic travel insurance product has already delivered unmatched value for travelers embarking from the U.S., 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 expects 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 the company 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. In addition, the company released 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.
Faye Co-Founder & CEO, Elad Schaffer: “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.”
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: “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 happen on a trip,” says Ahmed who has joined Faye’s board of directors. “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: “Travel insurance is a fast-growing industry with evolving needs in the areas of customer experience, product relevance and digital innovation. 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.”
Faye 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 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.
Faye’s robust protection can cover travelers’ flights, hotels, health (including pre-existing conditions), luggage, and even their pets – all via an app on iOS or Android that sends real-time proactive alerts, provides 24/7 access to customer experience specialists, enables users to file claims digitally, and quickly pays for approved claims via electronic transfers to Faye Wallet, its digital debit card that can be added to Apple Wallet or Google Wallet. Thanks to Faye Wallet, travelers can also receive speedy reimbursements for travel inconveniences (such as delayed bags and flights) and instantly use funds to purchase what they need most rather than paying out of pocket.
Faye is redefining insurance with the first 100% digital, consumer-centric travel insurance for Americans enabling smarter, faster assistance and claims resolutions. Faye’s whole-trip protection, coupled with its proprietary technology, provides 24/7 immediate support anywhere in the world, quick reimbursements and an app where you can do it all – from covering your trips to filing claims. For more information, please visit www.withfaye.com.
About Munich Re Ventures (MRV)
Munich Re Ventures (MRV) is the venture capital arm of Munich Re Group, one of the world’s leading providers of reinsurance, primary insurance, and insurance-related risk solutions. With more than $1 billion in assets under management, MRV invests in the most innovative start-ups transforming the future of risk and risk transfer. MRV’s experienced investors are financially-driven while focused on the strategic interests of Munich Re and the broader insurance industry. MRV works closely with Munich Re Group businesses across the globe to fund and partner with the best emerging companies developing new technologies and business models for tomorrow’s world.. For more information, please visit munichre.com/mrv/en.html.
About Munich Re
Munich Re is one of the world’s leading providers of reinsurance, primary insurance and insurance-related risk solutions. The group consists of the reinsurance and ERGO business segments, as well as the capital investment company MEAG. Munich Re is globally active and operates in all lines of the insurance business. Since it was founded in 1880, Munich Re has been known for its unrivalled risk-related expertise and its sound financial position. It offers customers financial protection when faced with exceptional levels of damage – from the 1906 San Francisco earthquake through to Hurricane Ida in 2021.. Munich Re possesses outstanding innovative strength, which enables it to also provide coverage for extraordinary risks such as rocket launches, renewable energies, cyberattacks, or pandemics. The company is playing a key role in driving forward the digital transformation of the insurance industry, and in doing so has further expanded its ability to assess risks and the range of services that it offers. Its tailor-made solutions and close proximity to its customers make Munich Re one of the world’s most sought-after risk partners for businesses, institutions, and private individuals. For more information, please visit www.munichre.com.
Faye travel protection plans include insurance benefits underwritten by United States Fire Insurance Company. Zenner Insurance Services, LLC is the licensed producer of Faye travel protection plans. Zenner Claims Administrator LLC and Travel Insured International are the claims administrators for the travel protection plans.
SOURCE: FayeTags: funding, InsurTech, seed funding, travel, United States (USA)