Ensurance invests in Koba, CEO joins the board
Ensurance invests in Koba, CEO joins the board
27 March 2023
ASX-listed underwriting agency Ensurance is investing up to $1.5 million in local telematics insurtech Koba, and its CEO Tom Kent has joined the Koba board as non-executive Director.
Ensurance will have the right to distribute Koba’s data-driven car insurance, under which premiums are calculated on a per-kilometre basis, while Koba will access Ensurance’s broker distribution network and corporate facilities.
Ensurance’s investment will convert into Koba shares upon pre-agreed milestones.
“This is a hugely compelling investment and growth opportunity for Ensurance,” Mr Kent said.
“With people increasingly working from home, and with a growing focus on reducing car use to minimise carbon emissions, I believe Koba’s products will be a very attractive offering to a growing number of vehicle owners.”
Ensurance recently sold its UK arm to PSC Insurance Group for $8.2 million and is re-focusing on the Australian market.
Melbourne-based Koba launched in November 2021. It splits premium payments into two: a fixed premium to cover drivers while parked, and a per-kilometre rate, typically between 3-10 cents, while driving.
Koba measures the distance driven and only charges drivers by their use via its Koba Rider device, connected with the Koba app to automatically calculate driving distances. CEO Andrew Wong says he is excited to have an established partner and Ensurance “shares our vision for delivering customer-first solutions”.
Koba investors include Hunter Equity Group and Insurtech Gateway. It won the Excellence in Insurtech category at the FinTech Australia Finnie Awards.
