An important round for Insurtech Lokky that makes it put its foot down on the accelerator. We interviewed CEO Paolo Tanfoglio to understand what he has in mind for the coming months.
What are the main purposes of the round that has just ended?
This funding will allow us to further accelerate the strategy of growth and expansion in the Italian market that had already been undertaken at the beginning of 2020. In a challenging historical moment, this investment will allow us, in fact, to strengthen the platform and innovate the product offer in order to get closer and closer to the needs of customers, support marketing activities aimed at expanding the user base, implement new tools and customized solutions through the use of smart analytics and big data and consolidate our positioning also through partnerships with non-financial players.
Are there strategic investors for your business and if so, which ones and why?
The operation has seen the entry of strategic private investors including the business angels of Angels4Impact (A4I) – an association of more than 60 young BA’s – and E-Levation – an association promoted by G2 StartUps and focused on investments in insurtech and digital health. They also coupled our project with private investors active in the banking and insurance sector, not only in Italy, thus giving us the opportunity to leverage their strong expertise to accelerate the development plan.
What are the differences between the Lokky closeing this round and the one closing the previous one?
It has been over a year of work, but the current Lokky is deeply different from the previous one. At the time we were little more than an idea. We were starting to work on the most innovative aspects, but we shad no feedback from the market and the insurance industry. Today, instead, Lokky is a team that has been able to achieve its first successes both in terms of acceptance by the reference market and by the operators in the sector – first and foremost the insurance companies – who see us as an innovative, but at the same time strategic partner, to reach such a heterogeneous clientele as that of micro-enterprises, professionals and freelancers.
What is your positioning today in the Italian market? Has it changed with lockdown?
We are the first in Italy to position ourselves as a digital insurance partner for micro businesses, professionals and freelancers. As often happens, Lokky was born from a market need that we have personally experienced. Above all, due to the lack of solutions studied ad hoc based on the real needs of professionals or entrepreneurs. Thus, we have identified the friction points of the customer’s journey made inefficient especially by the poor digitalization and targetization of the services offered and, after identifying an unmanned market segment, we have started to build our offer.
Lokky solves these inefficiencies by accompanying the customer in all phases of the “supply chain”: we were, in fact, the first to introduce on the market a totally digital and real time experience for business customers. The customer accesses a highly personalized proposal, displays his quote, makes the payment and signs the policy directly on the platform in a few minutes. Currently Lokky meets the insurance needs of more than 200 types of micro, professional and freelance businesses, with coverage for liability, professional liability, legal protection, accidents, fire, theft and other damages. The proprietary algorithm – developed by our data scientists and already tested on more than 40,000 real clients – has made the insurance consulting process completely digital and automated through advanced customer profiling and real time product customization. Lokky was also born to be closer to the customer and its platform is natively ready to be integrated by external partners, both digital and physical.
The lockdown on the one hand has been an accelerator of this digitization process. On the other hand it has increased the level of uncertainty about the economic prospects of our customers. In response to the changing economic environment, we have decided to invest even more in services and technology that help our clients optimize their level of insurance coverage. In times of economic crisis our clients have historically decreased their propensity to spend on insurance. At Lokky we want to help clients reduce costs, but at the same time maintain an adequate level of protection by changing the coverage mix.
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