(Image source: Roost.)
Roost, a Sunnyvale, Calif.-based provider of home telematics solutions for property insurance carriers, today announced it has closed a $10.4 Million Series B funding round. The new funding was led by Aviva Ventures, with participation by Desjardins Insurance and Fosun RZ Capital. Existing investors also participated in the round, bringing Roost’s total funding to date to $17 Million.
“This funding highlights the impact our home telematics solutions are having on insurers and their customers, especially with the effect we are seeing on increased customer engagement,” comments Roel Peeters, CEO, Roost.
Roost has developed a patented, connected platform of data sensors that can be deployed very inexpensively to provide Home Telematics solutions. Among Roost’s solutions marketed to the insurance industry are the Roost Smart Battery and the Roost Smart Water Leak and Freeze Detector solutions. Roost’s primary go-to-market approach is through Insurance companies deploying directly to their policyholders. The vendor pitches its solutions as a means of addressing fire and water perils which cost the U.S. insurance industry roughly $20 billion annually. The solutions are designed help to prevent losses and also boost policyholder engagement through what the vendor calls a content-rich, digital mobile app experience, which Roost says has the potential to impact both retention and customer acquisition.
Shaping the Future of Insurance
“As a corporate venture fund, we look for innovative businesses around the world that will shape the future of insurance and we are delighted to be entering the US market with this investment in Roost,” comments Ben Luckett, Managing Director, Aviva Ventures. “Roost has great technology and a strong team. In the UK, we have been offering Roost Smart Batteries to our home insurance customers and I am excited about how this investment supports our ambition to empower our customers to prevent bad things from happening, rather than fixing it when something goes wrong.”
“The launch of our Alert program in March, enabled by Roost’s Smart Water Leak and Freeze Detector, has contributed in driving policyholder engagement and loyalty,” said Boris Collignon, VP Strategy, Innovation and Strategic Partnerships, Desjardins Insurance. “Our policyholders can take advantage of this free solution to quickly mitigate water leak situations before damage occurs and to avoid this type of stressful situation as much as possible.”
Validation of Value Proposition
“We are very excited to have the participation of three major insurers in our latest investment round,” adds Roost’s Peeters. “This commitment is a strong validation of Roost’s value proposition as a leader in the emerging Home Telematics Insurance segment. The new funding will be used to continue our product development efforts as well as expand new product services for our insurance partners.”