Luko Raises €2M and Enters Insurance

Luko , the Paris-based version of Neos that began its journey by offering a smart home device to improve home safety and reduce energy bills, is now offering home insurance following a €2M funding round. The round was led by Xavier Niel, cofounder of Kima Ventures and Bruno Rousset, president of Lyon-based insurer April. Additional investors include: Pierre-Yves Durand, former marketing director of AXA, Pierre-Olivier Desaulle, former European CEO of Hiscox and Arnaud Le Bihan.

Founded in 2016 by Raphaël Vullierme and Benoît Bourdel, Luko initially offered the “Luko Home Guardian” device – a small box that sticks on the electricity meter to read consumption in real time. Based on machine learning algorithms, the device detects all electrical appliances in the house to know when and how they consume energy, helping improve the protection of homes and alerting users to prevent risks.

On May 29, 2018, Luko’s cofounder and CEO Raphaël Vullierme announced the company’s new offering on Twitter:

So excited & proud to announce the launch of #luko home insurance🏡. A big step toward our mission : #protect every european home.@getluko is home insurance as it should be: transparent, who protects you & and pays super fast when you need it.https://t.co/zwbQAjuhym #AI pic.twitter.com/Cz0YfMH2ol

— Raphael Vullierme (@phareall) May 29, 2018

In a Medium post, Raphaël Vullierme explains Luko’s mission: one the one hand, to prevent claims that can be avoided with the use of technology, and on the other, to present a simple, transparent and conflict-free insurance model. For preventing claims, Luko offers devices that go on doors, electric and water meters, along with a device that connects to one’s Wifi for retrieving data from different sensors.

Three more things. Coverage is underwritten by La Parisienne Assurances. Luko offers a fixed fee model – charging 30% for operations and 70% for paying claims. Any leftover money is donated to a charity of choice.

“There is a conflict of interest at the heart of the traditional insurance model: there is always a winner and a loser. When the insurer reimburses your claim, you win, he lost and vice versa. In fact, all the money that is not used to pay you back increases your profits at the end of the year. That’s why it turns every one of your repayments into an obstacle course” – cofounder and CEO of Luko, Raphaël Vullierme.

Bottom Line: a technology company offering insurance with 1,340 people on the wait-list.