A UK startup is to take its pioneering drone insurance scheme to new heights after raising £2.25m in funding from investors.
Flock, a London-based company, is to use the money to launch its drone insurance platform, Flock Cover, internationally, as well as expand its London tech team.
The company uses real-time data to calculate the risk of any drone flight, looking into hyperlocal weather conditions, population density and proximity to high-risk areas such as airports.
This quantified risk metric is then converted into an insurance premium, allowing pilots to purchase hourly insurance policies for their flights.
The ‘pay-as-you-fly’ insurance cover allows drone pilots to insure flights for a minimum of one hour from their smartphone using the Flock Cover app.
Now this app can be launched across the globe thanks to the investment led by Anthemis, an investment firm focused on Fintech and Insurtech investments.
Other investors included Silicon Valley’s Plug and Play, Seed and Speed, and London VC Downing Ventures (who are re-investing having led Flock’s pre-seed round in 2016), along with a number of angel investors.
Ed Leon Klinger, Flock’s CEO, says that Flock Cover is already having an impact on the drone industry.
“Our customers are now planning their flights carefully on the app,” he says, “scheduling their take-off time to minimise their flight risks, and saving money as a result.
“On the Flock Cover app, it takes less than twenty seconds to get covered. Pilots pay for insurance only when they need it, and instantly receive a fully-customised policy for their flight.” He adds. “It flies in the face of traditional insurance.”
Carsten Maschmeyer, founder of Seed and Speed Ventures comments: “For me, there were three key reasons why we invested in Flock: Excellent founders, a great technology and the very exciting business model combined were more than convincing.”
Flock emerged in 2016 from academic research undertaken by its founder, Antton Peña, and CEO, Ed Leon Klinger, who published papers on drone flight risks at Imperial College London and Cambridge University, respectively.
Over 1,000 commercial drone pilots now use Flock Cover, which launched earlier this year in the UK, representing a departure from flat-rate ‘annual’ premiums in favour of Flock’s on-demand alternative.