French B Corp Luko raises €20 million to expand home protection technology, an insurance that prevents incidents

Luko, the Paris-based home insurance company, has raised a €20 million Series A round led by Accel, with support from Founders Fund and Speedinvest. The startup, which is B-Corp certified, aims to transform the insurance experience through a combination of social responsibility and technology.

Much about the home insurance industry is due for an upgrade. Worth €100 billion in Europe alone, the sector is still overly opaque and complex, with an out-of-date -- and often negative -- customer experience. With insurance it seems customers are satisfied up until the point they actually need to use the service. On average, after the ordeal of filing a home insurance claim, 40% of consumers choose to change provider. That’s a pretty poor customer retention record.

“We believe consumers need fairer insurance options that they can clearly understand and that will bring them peace of mind. While customer churn is traditionally an industry problem, Luko’s is nearly nil, and our Net Promoter Score is five times the industry average," said Luko co-founder Raphaël Vullierme.

What about Luko’s service is so different? The French insurtech is developing proprietary home protection technology that is designed to actually prevent incidents. The service monitors a home’s front door, water supply pipe and electric meter; machine learning analyses this data to help prevent floods, fires and burglary.

The company charges a flat fee, which is used for claims management, operational costs and to pay claims. At the end of a year, the leftover money is donated to charities chosen by Luko customers through its Giveback programme.

Further cementing its B corp status, as part of the Series A round, all participating investors had to agree to sign Luko’s social and environmental impact mission, accepting that Luko will not trade its mission and impact for growth.

Commenting on the funding, Vullierme continued, “We believe the future of homecare is in effectively protecting homes, and this investment will help us get there faster. We will use the new funding to accelerate our home protection technology development, expand from France across Europe and develop additional HomeCare Services.”

Luca Bocchio, who led the investment for Accel and will join the board, said: “Insurance is still largely a very traditional industry. With only eight per cent online penetration, the whole industry is poised for change. Consumers have suffered long enough with poor home insurance options, and Luko is bringing a new option to market with fairness at its core. With an ambitious team, a sleek product, impressive technology under development and strong customer love, Luko will change the equation for millions of home insurance customers across Europe, as it pioneers an end-to-end homecare solution.”