Travel Insurance Startup Faye Raised $8M in Seed Funding

Start-up for whole-trip travel insurance Faye today announced it has raised $8MSeed funding is led by Viola Ventures F2 Venture Capital participation from Portage Ventures, Global Founders Capital (GFC) Omri Casspi, a former NBA player. This news comes after the company announced that it was going into stealth mode to offer a more tech-driven, fast, person-first, and personalized travel coverage to American customers.

Faye is setting a new standard for a market that has seen little innovation. The company’s robust protection can cover travelers’ trips, health, belongings, and even their pets, all via an app that sends real-time proactive alerts, provides 24/7 access to customer experience specialists, enables users to file claims digitally, and quickly pays for approved claims via electronic transfers to Faye Wallet, it’s easy-to-use secure payments card that works like Apple Pay and Google Pay. Via Faye WalletYou can get instant reimbursements for travel problems (such as delayed flights and bags) and use these funds to instantly purchase the things you need, rather than spending out of pocket.

Co-Founder & CEO, Elad Schaffer“Travel insurance has become synonymous with lengthy, jargon-filled policies that leave travelers confused rather than well-informed. The claims process is often slow, bureaucratic, and can require a lot more paperwork and time. Faye will be on the market to address these issues at a time when consumers plan to travel more and want to find ways to protect themselves while they are traveling. We’re here to meet their rising expectations and transform travel insurance from a forgettable add-on to a must-have advantage that enhances the entire trip experience.”

Available on iOS and Android, Faye has seen an influx of customers since launch, with its Customer Experience Team reporting that the majority are keen to understand how the company offers COVID-19 coverage. For those that purchase Faye’s travel protection and become ill with COVID-19 pre-trip, there is coverage for their cancellation claims up to their plan’s limit, all subject to the terms of the plan. And if they contract COVID-19 in-trip, there’s coverage for emergency medical expenses and trip interruption/trip delay claims (such as quarantine accommodation, flight changes, prescription drugs and hospitalization). International travelers are also covered up to $250K in emergency medical expenses if they experience illness or injury in-trip. This amount is higher than the majority of insurance requirements for American tourists.

Omry Ben DavidViola Ventures General Partner: “Faye is re-inventing the category of consumer travel insurance in the U.S. where data isn’t leveraged yet for bespoke, price-optimized coverage in an industry with very favorable growth characteristics and unit economics.”

Faye is made up of experienced travel and insurance professionals, including Jeff RolanderDirector of Claims. This is a new role that was created by Judith, who has been with Allianz for nearly twenty years. Moran TreiserLemonade’s VP of Growth. He co-founded the company’s growth marketing operation. Lauren Gumport, Director of Communications, who built and executed travel tech Guesty’s global communications strategy.

Faye has also set up a team of advisors to help the company navigate an environment dominated by legacy actors, such as former CEO of Global Travel Insurance, Allianz. Mike NelsonFormer VP of Sales for AIG Travel Guard Rick EnsignFormer President of Generali Travel Assistance Raija Itzchaki.

Mike Nelsonformerly CEO, Global Travel Insurance, Allianz. “Many companies offer travel insurance, but none have introduced a fully digital experience that eliminates the paperwork and hassle. I’m confident that the Faye team – with their paperless solution and person-first mentality – will deliver a superior, mobile experience to travelers.”

The second startup was founded by serial entrepreneurs who are also travel enthusiasts Elad Schaffer and Daniel Green, Co-Founder & CTO, Faye promises to focus on building long-lasting relationships with travelers so they feel looked after, even before they leave home. In the coming months, the company plans to dedicate this capital injection to recruit talent strengthen its technology with additional proactive trip support and claim automation capabilities. Faye will also be onboarding new distribution partners, such as travel agents, travel agencies, OTAs, and other brands who place the traveler first.

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