Koba driving image

KOBA announces underwriter and raises $500k in a day

KOBA Insurance opened their crowdsource funding round with Birchal on 26th August, reaching their minimum target in the first 2 hours and closing the first day with $525K from just 160 investors. A day later, the company announced Eric Insurance Limited will underwrite KOBA’s connected pay-per-km product, pioneering a new data-driven and user-based approach to car insurance in Australia.

KOBA is part of the new breed of insurance companies using data to build more customer-centric insurance solutions. KOBA uniquely splits premium payments into two: a fixed premium to cover drivers while parked, and a ‘per-km’ rate, typically between 3-10¢, while driving. In real-time, KOBA measures the distance driven and only charges drivers for what they use.

Currently in beta testing phase, KOBA will use this next round of funding to scale awareness amongst early adopters, continue to evolve the app experience, and bring on some key hires to round-out the team. KOBA will launch in-market in October.

The underwriting partnership with Eric combines eric’s extensive experience as a wholly Australian-owned, leading general insurer with KOBA’s innovative, telematic approach to change the car insurance industry.

“We’re excited to partner with eric as we launch KOBA in market this October. eric’s motoring expertise, experience over the last 20 years and collaborative approach is uniquely complimentary to a start-up like ours….this partnership will allow us to hit the market fast and meet customer service needs immediately” said Andrew Wong, Founder of KOBA.

Malcolm Tilbrook , CEO at eric added “KOBA has a great team and we have been impressed with them from Day 1. They have a great balance of experienced insurance veterans and proven startup talent who have worked directly with the senior leaders at eric. We are throwing our full support behind them and are excited to see what they can produce”

With increased technological advancement in cars and many OEM’s launching connected models in 2022, KOBA is uniquely positioned to pioneer the switch from traditional insurance to usage-based Insurance.

Wong said “The OEMs will drive this change. It’s our opportunity as an insurtech to work with the change, not against it’. Wong has successfully launched businesses and raised capital here in Australia and in San Francisco. “His understanding of the insurtech game and how to create disruption will be great for the Australian market” said Mr Tilbrook.

Mr Tilbrook goes on to add “Global investment in Insurtech is at an all-time high, it makes good business sense to explore new solutions. eric can supply the guidance and direction to navigate this highly regulated industry, giving KOBA the confidence and best chance to succeed.”

KOBA Insurance is currently in beta phase with a select group. The company is on-track to launch to the wider market in October this year.