Skift Take
New tech is enabling travel brands to upsell consumers with more targeted trip insurance policies. Think rain cancellation policies for camping or ski trips.
Banks have recently been disrupted by the rise of fintech, or startup companies that provide payment and other services that enhance or replace what traditional financial institutions offer. Travel companies have been affected, such as Booking Holdings' debut this month of a fintech division. Insurance companies are the next sector to get disrupted, this time by startups in "insurtech." This change impacts travel brands that seek profits from upselling customers on trip insurance.
Exhibit A for the trend is Setoo, a startup that helps travel companies sell customized and creative travel insurance products as upsells. The company said on Thursday it had agreed to a merger with Pattern Insurance Services, an insurtech founded in 2020, Skift has learned. The joint company will be based in Palo Alto, California, and operate across Europe and the U.S. under the name of Pattern.
The companies didn't disclose the terms of the deal. The two startups have together raised $25 million in funding from investors that include Kamet Ventures, Comcast Ventures, MS&AD Ventures, Foundation Capital, FinTLV, TechAviv Founder Partners, Kli Capital, and Abstract Ventures.
New startup Pattern, led by CEO Meitav Harpaz, is one of the tech players making a claim on the travel insurance industry. It's just one small startup w
