Insuretech startups Pattern and Setoo will merge under an agreement to create a global insurance platform for third party e-commerce sites.
The merged company will operate under the Pattern brand name. Other terms have not been disclosed.
Setoo was created in 2017 with a vision to provide travel businesses a way to automate the insurance process and to develop personalized cover plans for each traveler.
The company has worked with online travel agencies and is underwritten by insurance firm AXA.
U.S.-based Pattern is only just emerging from stealth mode and has a similar strategy of giving websites the opportunity to embed branded insurance products.
The joint company will operate in both Europe and the U.S. The insurance backing of Pattern will be from AXA, Spinnaker Insurance Company, Wakam and others.
Noam Shapira, who co-founded Setoo and its co-CEO with Eyal Gluska, says: "Following the COVID pandemic, global markets were severely altered, and consumer concerns of unprotected risks grew even bigger.
"Our customers who use the platform to offer our innovative protections are already seeing accelerated recovery ahead of the rest of the market."
The merger is expected to complete in August this year.
Setoo was the runner-up of the Award For Travel Innovation (Startup Category) at The Phocuswright Conference 2019 and was named one of PhocusWire's Hot 25 Startups for 2020.
Here is its pitch:
Setoo - Summit - The Phocuswright Conference 2019
And further analysis in the PhocusWire Studio:
Setoo interview (PhocusWire @ Phocuswright Conference 2019)