Peer-to-peer insurance startup Friendsurance has announced two new investors: the Hong Kong billionaire Li Ka-Shing and his technology focused Horizons Ventures, plus VantageFund from Australia. The funding round was undisclosed but we understand the round is in the ‘millions of Euros’. The company already has funding from private investors including e.ventures.
Friendsurance delivers cheaper insurance to customers using an innovative peer-to-peer method.
Customers can connect online and create their own insurance pool. Small claims are paid out of this pool, with bigger claims covered by traditional insurance. If the claims do not exceed the pool, the money is returned to the customers. Customers never pay more than their original premium. The more friends in the pool and the fewer claims means the more you save.
In January, 94 percent of customers on the Friendsurance network received cash back. The Friendsurance cashback is currently available on a range of retail products.
The business has grown to over 40 staff since launch in 2010 and is headquartered in Berlin, Germany.