Insurtech Gateway Australia secures Government funding and leads angel funding round for a pay-by-km car insurance brand
December 2020 (AEST):
Insurtech Gateway Australia has received funding from the Australian Government to accelerate its incubation program in Australia and has recently led a $250K angel funding round for Australia’s newest connected car insurance company, Koba.
The $250,000 Incubator Support Grant from the Federal Government was announced in November and will help support the Gateway’s efforts to bring new disruptive and innovative startups to market in Australia.
The Gateway helps insurtechs by removing the traditional barriers to entry in a highly regulated market and providing founders with mentoring, seed funding and access to its network of insurance professionals. Envest works in collaboration with Gateway to provide support for its incubation program and as a co-investor in the Gateway model.
Federal Member for Cowper Pat Conaghan said the Morrison-McCormack Government had recognised the potential of the company, which has offices in Coffs Harbour, Sydney and Brisbane, to help bring new disruptive and innovative start-ups into market in Australia and potentially overseas.
“The $250,000 Federal grant to Insurtech Gateway Australia will help it establish here, and in turn, Insurtech will help other suitable start-ups to implement successful pilots and become successful businesses.”
Insurtech Gateway Australia currently has three companies in incubation, including a pay-as-you-drive motor insurance offering.
Founded by Andrew Wong, Koba will use an established, best-in-class technology platform out of the UK to create a flexible, pay per kilometre car insurance offer.
The $250k angel funding round announced in December is led by Insurtech Gateway Australia and supported by local angels and the Hunter Equity Group.
Mr Wong said the first round of funding would secure go-to-market readiness and localization of international pricing/risk models based on mileage and driving data.
“Koba has chosen to partner with experienced and strategic partners who have proven success in scaling Australian insurance businesses. We have sourced best in breed technology from the US, UK, and Australia to create our unique offer, that deploys fast and is profitable for insurers,” Mr Wong said.
Mr Wong said the company was planning to offer a truly connected customer experience for all drivers. Drivers can choose to connect directly through their driving ap, an on-board device, or even through your smartphone.
Insurtech Gateway Australia CEO Simon O’Dell said he was backing Koba and fast-tracking plans to bring the product to market because recent market research had demonstrated a strong appetite for new, fairer insurance offers.
“We are seeing global markets adopting the connected car faster than expected. All motor brands are focused on unlocking connected car services for customers; brands like Tesla, General Motors, and Ford have already launched insurance offers. We (Australia) are behind the curve on this one, we are near a tipping point in the car insurance industry and Koba is uniquely positioned to drive the change in Australia.” Mr O’Dell said.