New insurance model seeks crowd funding – motoring.com.au

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An Australian start-up is fund-raising to deliver a new car insurance model for consumers

Australian start-up KOBA will seek crowd funding to deliver a new pay-by-the-kilometre car insurance model.

The fund-raising will be conducted via Birchal, Australia’s largest investor community.

Other auto-related businesses that have sought funding via the Birchal platform include mydriveschool, a simulator-based young driver program.

The Birchal process includes an Expression of Interest (EOI) phase which in the case of KOBA opens today and runs to August 26.

KOBA’s insurance product is based on a cost-per-kilometre fee plus a monthly rate to cover the car when it’s not moving.

KOBA accesses distance and other data via the car’s onboard computer and uses a linked smartphone app as its consumer interface.

“KOBA is issuing a public EOI for investment and has started to collect interest from the insurtech, fintech, and start-up investing communities. We believe the change for more customer-centric insurance products will start from our own communities. And we’re inviting everyone to get involved,” KOBA founder Andrew Wong told carsales.

To date, KOBA has raised capital from angel investors and insurance-specific funds including Hunter Equity Group and Insurtech Gateway.

The company says the Birchal funding will help scale awareness of the product and fund product development.

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