The market for auto insurance is ripe for a major overhaul. European car insurance has long been characterized by standardized policies that overlook individual usage patterns. Dominated by traditional incumbents, the market has been slow to adapt to the evolving demands of consumers who seek more user-centric and digital solutions that are easier to buy and offer more transparency. In an era when the focus has shifted from a one-size-fits-all approach to more tailored solutions for consumers' insurance needs, the increasing digitalization of the automobile industry brings with it an enormous opportunity to rethink how auto insurance can adapt to the changing habits of consumers.

That’s why we are excited to be backing Flitter, a French startup offering a wholly digital insurance product that aligns with the changing consumer habits and mobility needs of French households. 

‍

An elegant business model

Flitter's business model is elegantly simple: the startup is one of the first in France to offer a usage-based motor vehicle insurance model. The company's fully digital pay-per-mile car insurance solution is designed to be as flexible as it is precise, catering to the specific needs of drivers. By focusing on those who travel less than 12,000km annually, Flitter offers a cost-effective alternative to traditional insurers, with pricing that reflects actual vehicle usage. 

We led Flitter's Seed funding through our Helvetia Venture Fund, closing a €3.5 million round to fuel further growth and innovation in the auto insurance space, and are very excited to welcome Flitter as the latest member of the b2venture community. The round also saw participation from notable operators from tech and insurance space, including Stéphane Treppoz, Christophe Eberlé, and founders from Frenchfounders fund, Voodoo, and Sorare. This follows a €2.5 million pre-seed round in January 2022, led by GFC, and marks a significant milestone in Flitter's extraordinary growth path.  

We believe in Flitter's vision to revolutionize auto insurance with a digital, user-centric, and usage-based model. Flitter's approach is not just about changing how insurance is sold and managed; it's about aligning with the modern consumer's expectations for transparency, flexibility, and fairness.

‍

Here’s why we believe in Flitter’s approach:

Tech Stack - At the heart of Flitter's potential is its state-of-the-art tech stack. The company has developed a modern API-infrastructure from the ground up, ensuring seamless integration with a multitude of operational partners. Flitter acts as an orchestrator, harmonizing critical partner interfaces on its platform, which streamlines processes related to claims management, distribution, payment processing, underwriting, and beyond. This robust API architecture is not just a backbone for Flitter's current product offerings but is also a launchpad for its rapid growth trajectory. 

Innovative Product - Flitter’s technology is a gateway to innovation on both the product side as well as the distribution side - their orchestration layer is an enabler for embedded insurance use cases, leveraging the power of established brands and platforms in the automotive space to distribute Flitter's tailor-made insurance products, while Flitter is equipped to path the future of auto insurance enabled by the surge of connected cars. Flitter combines business model innovation on the back of their usage-based pricing model and technological advancements related to connected cars and has launched an insurance product that removes friction through a state of the art API-connection to vehicles insured by Flitter. This innovation allows vehicles with embedded communication systems to connect with Flitter, automatically reporting their mileage.

Thoughtful Approach to Insurance -  Flitter's approach to insurance is methodical and customer-centric. The team has always prioritized building an insurance product that attracts the right kind of customers. This focus has laid the groundwork for a healthy portfolio with a low loss ratio, setting Flitter up for sustainable and steady growth. It is this disciplined approach that enables Flitter to avoid the pitfalls of aggressive growth strategies that can lead to adverse selection and potentially jeopardize the business model in the long term. Our close partnership with an established insurer like Helvetia has taught us to emphasize insurance KPIs and look for insurtechs that get the basics of insurance right. In the insurtech industry, where business models are tested over time, attracting and retaining the right customer base is not just important – it's imperative for longevity and success. 

Proven Track Record  - The company’s technology and business model are not just fundamental for Flitter's current product offerings but also represent a catalyst for ongoing growth. With over 30,000 customers and counting, Flitter has tripled its policyholder base in the last year. The company is not only expanding its customer base but also its product offerings, with a recent launch tailored for connected cars. 

Visionary Team - The team behind Flitter has been a crucial factor in our decision to invest. Jeremy's, Hajer's and Arnaud's dedication and diverse expertise have propelled Flitter to excel in the trifecta of insurance, technology, and distribution. The team's ability to navigate the complexities of the insurance landscape while driving technological innovation and understanding the nuances of customer acquisition and retention has convinced us of their potential to lead the market in France. 

‍‍

Car Insurance in Europe is a multi-billion euro opportunity

The auto insurance market, while substantial in size, has been starved of innovation. This presents a great opportunity for a company like Flitter, which brings to the table a unique value proposition offering one of the first usage-based auto insurances in France. The potential for growth is immense, and Flitter's offering is poised to meet the evolving needs of the market. 

As my colleague and partner Michael Wieser at the Helvetia Venture Fund says: “Car insurance is a €150 billion market in Europe, but few new players have positioned themselves to innovate against traditional incumbents, and none have managed to build a profitable model.  Flitter’s model is well-positioned to succeed in this challenge and become one of the first insurtechs to achieve profitability while maintaining sustained growth."  

We are proud to support Flitter's mission to drive innovation in the insurance space forward and look forward to the road ahead.