Faye – a travel insurance startup company – announced recently that it raised $10 million in Series A funding. This brings the company’s total funding to $18 million. This funding round was led by Munich Re Ventures along with existing investors Viola Ventures and F2 Venture Capital. And additional investors include Menora Tech and Mike Nelson, former CEO of Global Travel Insurance at Allianz.
Faye’s proactive and holistic travel insurance product 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 is expecting to quadruple its revenue in 2023 alone, having earned millions in premiums in its first year in the market. And the company also plans to more than double its pool of travel advisors and distribution partners which is already in the hundreds.
This funding news comes shortly after the company launched its Travel Advisor Portal, which is a one-stop-shop where travel advisors and agencies can easily offer, learn about and manage travel insurance with Faye. Plus 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.
The demand for travel insurance purchases across the industry supports what will be an incredibly busy season of summer travel. And Faye anticipates continued consumer frustration – ranging from crowded airports to staff shortages resulting in an increase in trip protection purchases and reliance on providers that go the distance to offer both insurance and around-the-clock assistance.
Faye 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’s 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 next few 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 protection can cover travelers’ flights, hotels, health (including pre-existing conditions), luggage, and even their pets – all through 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. With 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.
KEY QUOTES:
“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.”
— Faye Co-Founder & CEO Elad Schaffer
“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).”
— Sidra Ahmed, Investment Director, Munich Re Ventures
“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.”
— Mike Nelson, former CEO, Global Travel Insurance at Allianz
