Floa launches lifetime warranty with Neat

Floa Bank has just announced the launch of a lifetime guarantee to cover all household assets. This guarantee was designed by AssurTech Neat, a young start-up specialising in affinity insurance, which has just raised 10 million euros in seed funding. Floa is entering a market where household appliances players such as Boulanger (with Infinity) and Darty (with Darty Max) are already present and where the subscription model is powerful.

FACTS

• Neat is a start-up founded in May 2022 by former employees from Lovys and Seyna, two specialists in flexible, subscription-based insurance.

• The InsurTech has just completed a seed round with Octopus Ventures, New Alpha, Mundi Ventures, Founders Future and some business angels.

• Its solution is offered as a white label to retailers and is integrated into the purchasing process. It covers theft, breakage, loss, breakdown and offers extended warranties.

• Neat targets the travel, mobility, health, household appliances and high-tech sectors, both online and at the point of sale.

• Its insurance partners are Mutuaide, Hannover Re, Acheel and Vyv International Assistance.

• Floa Bank offers this lifetime guarantee to its customers. For a subscription fee of 15 euros per month, Floa Bank customers can cover all or part of their equipment less than 3 years old, including reconditioned equipment. In the event of a breakdown, the repair is covered without deductible within 48 hours; if the device cannot be repaired, the customer is reimbursed at replacement value and the old device is recovered and recycled.

CHALLENGES

• To meet the aspirations of its customers, both in terms of sustainability and purchasing power. The strength of this guarantee is that it emphasises the durability of household goods, through the possibility of repairing them when possible or recycling them when the breakdown is irreparable. This promise is in line with the expectations of its customers, who are also concerned about preserving their purchasing power.

• Focus on simplicity and transparency. Neat's offer is extremely simple to understand (all appliances without exception, including refurbished appliances which have developed considerably in recent years) and the "all-inclusive" aspect in the form of a subscription remains an attractive model in this context. Always with a view to simplicity, Floa also makes it possible to insure the goods of one universe (6 euros / month), 2 universes (11 euros / month) or 3 universes (15 euros / month), among household appliances, image/sound and multimedia.

MARKET PERSPECTIVE

• Neat operates as a broker, based on a business referral model. With this fundraising, it plans to recruit 40 people over the next 10 months (compared to 20 currently). It has around a hundred BtoB clients (including Floa, Casino, Maeva and Ecox).

• This lifetime warranty model is reminiscent of two other initiatives in the household appliance sector: those of Darty, with its Darty Max offer coupled with its Darty button, which also allows for a video-conference diagnosis for prevention on household appliances; and also that of Boulanger Infinity, designed on the same principle of a universe to be covered.

• Finally, this vision of "all-inclusive" has also been explored by MAIF with the Assurance Unique: a single contract to cover all risks, for all people and all household goods.