Luko, the French insurtech for 3.0 home insurance

Luko, founded in 2017 in Paris, today has more than 15,000 clients and claims to be the fastest growing insurance company in Europe. Its focus is on home insurance, it takes up the Lemonade model and is also a Benefit Corporation

Published on 25 Nov 2019

Lemonade docet. The model of the insurtech giant made in the U.S. (which started to expand in Europe) has made its mark: in Paris, France, the insurtech startup Luko (with a very young team) has just raised 22 million dollars that it will use to develop new technologies and services and expand throughout Europe as the new customer centric, transparent and honest, technology driven, benefit corporation, give-back model, excellent customer experience. Just as Lemonade did, not a bad thing. The young founders have seen fit, and in any case they are proving they know-how to set up the business.  

What does Luko do 

The French start-up wants to regain consumer confidence in home insurance, which has been put to the test by “opaque” terms and conditions, a long and complicated underwriting process, an outdated and often negative customer experience, which has led to a reduction in subscriptions in recent years. According to the company figures, the home insurance market is worth €100 billion in Europe alone, but it seems that clients are satisfied to the point where they actually need to use the service. On average, after proof of a home insurance claim, 40% of consumers choose to switch providers. 

The response from Luko is to speed up the process of taking out home insurance and filing claims: through his website, it takes “two minutes” to get insurance coverage and “two hours to receive payment for a claim and two days for the damage to be repaired”. 

Raphael Vullierme, co-founder, said: “We believe consumers need fairer insurance options that they can clearly understand and provide them with peace of mind. While customer dropout is typically an industry issue, Luko’s one is almost zero and our Net Promoter Score is five times the industry average. 

Its next aims 

The goal is to “create insurance 3.0” and use technology to help customers prevent accidents, such as monitoring the front door of a house, water supply and electricity meter, using artificial intelligence and machine learning to analyze data. 

Part of the funding will be used to develop proprietary technology to help detect incidents before occurring, according to Luko, as well as to develop other services and help it expand across Europe. 

 “This is the first step towards our real breakthrough, avoiding domestic incidents at all. We think the future of home care is in the effective protection of homes, and this investment will help us get there faster”. 

 “We will use the new funding to accelerate the development of our home protection technology, expand from France across Europe and develop further home care services. 

Luko is also a Benefit Corporation 

The startup, B-Corp certified, aims to transform the insurance experience through a combination of social responsibility and technology. 

The company applies a fixed rate, which is used for claims management, operating costs and payment of claims. At the end of a year, the remaining money is gifted to charities chosen by Luko’s clients through the Giveback program. 

To further consolidate its status as B corp all participating investors had to agree to sign up to Luko‘ social and environmental impact mission, accepting that the company will never negotiate its mission and impact for growth. 

Luca Bocchio, from Accel, the main investor of the startup, said: “Insurance is still largely a very traditional sector. With only eight percent online penetration, the entire industry is ready to change. Consumers have suffered long enough due to poor home insurance options and Luko is bringing a new offering to the market with equity at the center. With an ambitious team, a sleek product, impressive technology being developed and a strong love of customers, Luko will change the equation for millions of home insurance customers across Europe as a pioneer of an end-to-end home-care solution. 

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