Cachet raises €5.5m to expand its marketplace for platform economy insurance
By Joy Dumasia
May 12, 2022
- Digital Insurance
- Employee Data
- Employee Insurance
Cachet, the platform worker-focused insurance companies marketplace that goals to foster a more healthy platform economy has raised €5.5 million to expand its companies to gig staff throughout Europe. The Tallinn-based InsurTech gives options for the rising platform economy workforce, accounting for 1 out of 5 economically energetic residents within the EU by 2025.
Traditional insurers battle to cope with platform work’s distinctive wants, reminiscent of ride-hailing drivers that work throughout completely different platforms like Bolt and Uber. This makes employee safety cumbersome and dear. Cachet solves the problem of a platform employee’s employment-related information being unfold throughout a number of platforms by aggregating the info throughout platforms. By constructing a greater image of employee employment patterns, Cachet allows insurers to create truthful and versatile insurance insurance policies and lower the prices for staff.
Cachet already gives extra reasonably priced motor insurance for ride-hailing drivers and common shoppers, and supply rider insurance covers private harm and property injury, accidents and medical bills. The firm’s new insurance plans will embody third-party legal responsibility and private well being and accident protection for gig staff.
Cachet may also pioneer a data-led fleet insurance mannequin within the Baltics and the CEE area to enhance danger administration of business automobile and micro-mobility fleets used to present app-taxi and supply companies, thereby decreasing insurance prices for each staff and fleet managers. More than 12 insurance underwriters belief cachet with main carriers like Allianz, PZU and VIG Group.
Hedi Mardisoo, Co-Founder and CEO of Cachet, mentioned: “Even although the platform economy has made firms like Deliveroo and Bolt a few of Europe’s fastest-growing firms, it has been accompanied by a heated debate about staff’ rights. We have been concerned in EU-level discussions to regulate platform work, and there’s an impulse to remedy issues by reclassifying platform staff as staff. But utilizing outdated considering to remedy new issues is probably going to outcome within the child getting thrown out with the bathwater.
Instead, we expect that we are able to use know-how to repair issues partly brought on by know-how. This method, we are able to hold the pliability and freedom of the platform work ecosystem whereas placing the gig employee again within the driver’s seat.”
Leading the €5.5 million financing spherical was Paris-based Truffle Capital, making this their first funding within the area. The spherical additionally included Uniqa Ventures, an knowledgeable within the Central Europe area, and former backer and lead investor Icebreaker.vc. Truffle Capital and Icebreaker.vc representatives will be part of Cachet’s supervisory board.
Bernard-Louis Roques, Co-Founder and CEO of Truffle Capital, mentioned: “Cachet has a strong regional footprint in the Baltic region and a clear long-term vision on how to tackle the platform economy problems from the freelancer’s perspective. Freelancers are the driving force of the new economy. Cachet has developed impressive data capabilities, with unique data assets, data platform and data science resources, which enable it to treat each and every freelancer individually, and at the same time, minimize the risk ratio for its insurance partners, making it a rising force in one of the most dynamic insurtech market.”
Dr. Andreas Nemeth, CEO of UNIQA Ventures, mentioned: “Cachet’s data-led pricing for gig economy workers does improve driving behaviour and has great potential to make commercial fleets safer and cheaper driving loss rations lower. Besides that, the data-driven success and the related massive growth potential of Cachet aligns perfectly with our investment focus on embedded insurance. I am excited to support Cachet’s founding team on their future success journey.”
The funds might be used to develop the corporate’s group, enhance its know-how and information fashions, and expand inside Europe. Cachet has an insurance distribution license that has been passported to most EU international locations and presently operates in Estonia, Latvia, and Poland, whereas additionally serving prospects within the UK, Lithuania, and Finland. In addition to Bolt and Uber, it additionally works with platforms like Upsteam, Citybee and Cleanify. In Estonia, the corporate’s first market, Cachet, holds 40% of the app-taxi section’s market share.
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