PriyaPatel
TLDR:
- Faye is disrupting the American travel insurance market
- Most Americans only realized the need for travel insurance following the COVID-19 pandemic
Insurtech company Faye is making waves in the American travel insurance industry. While Israelis are accustomed to purchasing travel insurance abroad, most Americans only recently recognized the importance of travel insurance due to the COVID-19 pandemic. Faye’s founders, Elad Schaffer and Daniel Green, see an opportunity to innovate in a market that has lacked innovation for years.
For Americans, travel insurance is seen as protection against flight cancellations or delays, rather than unforeseen events while abroad. Despite the low market penetration rates, the American travel insurance market already generates $6 billion, indicating vast untapped potential. Faye’s solution, which operates entirely through an app, has been received positively compared to traditional insurance companies due to its convenience and ease of operation.
With aspirations to reach sales of over $100 million within two years, Faye has already surpassed $10 million in revenues. The company, which employs 60 people, is dedicated to providing holistic care for American travelers on the road. Unlike Lemonade, another successful insurtech company, Faye specializes in travel insurance and aims to reach profitability quickly due to lower payment percentages and loss ratios.
Faye has no intention of entering Israel’s local market, as the American market provides a significant opportunity for growth and innovation. With $20 million in funding from Viola, F2, and Munich Re, Faye is set to continue disrupting the American travel insurance industry.
