INSURANCE TECHNOLOGY

Setoo, an E-Commerce Insurtech Pioneer, will Merge with Pattern Insurance Services, Creating an Embedded Insurance Global Leader

Setoo, Pattern Insurance | July 19, 2021

Setoo, an embedded insurance pioneer, announced today that it has entered into a merger agreement with Pattern, an insurtech startup that has emerged from stealth mode. Pattern will be the name of the joint venture's activities in Europe and the United States. Pattern will assist companies in generating new revenue streams and increasing customer satisfaction by transforming all of their online transactions into protected experiences without the need to be an insurer.

Pattern will provide a one-stop-shop for embedded insurance products, enabling businesses to provide a fully protected buying experience for their customers, along with real-time underwriting data for a frictionless buying process, as a result of a merger. The fully automated, embedded insurance-as-a-service platform enables businesses to create and distribute unique and personalized insurance products autonomously. Pattern's coverages include parametric and traditional insurance products, which are seamlessly offered by businesses to their customers while fully compliant with local regulations. In addition, Pattern requires companies to protect customers from unforeseen changes in plans, inclement weather, utility outages or surcharges, shipping delays, and other factors.

The two companies have received a total of $25 million in funding since their start, including a recent seed round of $10 million for Pattern. In addition, Kamet Ventures, the venture builder where Setoo was incubated, Comcast Ventures, MS&AD Ventures, Foundation Capital, FinTLV, TechAviv Founder Partners, Kli Capital, Abstract Ventures, and others have invested in the joint venture.

The merger is expected to be completed by the end of August. Pattern will be insured by AXA, Spinnaker Insurance Company, Wakam, and others after the merger.

About Setoo
Setoo enables e-businesses to develop and offer personalized protection products, increase revenue from ancillary services, and provide an exceptional customer experience. E-businesses can use Setoo's platform to create new, super-targeted parametric and traditional insurance products in minutes, address actual concerns, and generate automatic compensation without requiring consumers to take any action. Setoo serves high-profile clients such as Amadeus and LMN as an insurance Managing General Agent (MGA) in the EU and the UK.

About Pattern
Pattern is a one-stop-shop for innovative parametric and traditional insurance products that enable businesses to provide their customers with a fully protected digital buying experience. Pattern's coverage includes utility outages, weather incidents, and much more. Pattern is nearing the completion of its operational deployment as a US MGA.

Spotlight

The health insurance sector stands apart from Life or P&C insurance because of its unique model and number of stakeholders. Its challenges are sector specific: a fragmented ecosystem, margin pressures, regulatory uncertainty, and disjointed data access for stakeholders. However digital tools and data analytics appear to be addressing some of these long-time challenges.

Spotlight

The health insurance sector stands apart from Life or P&C insurance because of its unique model and number of stakeholders. Its challenges are sector specific: a fragmented ecosystem, margin pressures, regulatory uncertainty, and disjointed data access for stakeholders. However digital tools and data analytics appear to be addressing some of these long-time challenges.

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