French embedded insurtech NEAT Protect raised €50mn in Series A funding, led by Hedosophia, with support from Mundi Ventures, ETFS Capital, Athletico Ventures, and existing investors.
The round includes both equity and debt, with €30 mn in equity and €20 mn in debt. New funding will help NEAT in its goal to make insurance more accessible and integrated for businesses and consumers.
The funds will accelerate product development and broaden market reach. Dauzet stated, “We will continue to invest in making life easier for merchants and enhancing guarantees and service for their customers.”
He also thanked investors and partners, including co-founder Fabien Cazes, for their ongoing support as NEAT continues its journey to reshape insurance with innovative solutions.
Embedded insurance could make significant inroads into both personal lines and small commercial insurance business, exceeding $70 bn in premium by 2030.
Embedded insurance is currently a red-hot topic in the industry. It has permeated many of our recent conversations as clients evaluate how embedded currently impacts—or could impact—their distribution plans.
The sense of urgency is compounded by disruptor companies like Tesla throwing their hat, in a meaningful way, into the insurance ring.
NEAT enables companies to sell insurance to their customers, focusing on affinity insurance linked to other services or products. For example, insurance for smartphones, travel, or warranty extensions for appliances.
NEAT’s embedded insurance model allows partner retailers to offer these products and earn commissions, while NEAT handles the complexities of the insurance industry.
On the insurance side, NEAT works with insurance and reinsurance companies to cover the risks, acting as a managing general agent.
We set our own rates, products, and policies, while outsourcing the risk to insurers or reinsurers who trust us
Maximilien Dauzet, CEO NEAT Protect
NEAT creates its own insurance products with its compliance and actuarial teams, building in a small, transparent commission. Distributors also earn commissions, and reinsurers benefit from the collaboration.
Dauzet noted, “The real solution is to bring together the entire value chain in one company, aligning the interests of policyholders and distributors.”
This full-stack approach allows NEAT to develop a wide range of products. For example, travel insurance costs can vary based on age and destination, while smartphone insurance pricing depends on whether the device is new or refurbished.
by Peter Sonner
