Faye Financial Model

• Mobile-first travel insurance app; policy in ~60 seconds.
• Full-stack MGA: owns product design, distribution, administration, claims, and payments - no intermediary insurer layer for claims decisions.
• Proactive protection: active trip monitoring, real-time flight/COVID/security alerts, automatic micro-claim payouts (e.g. $200 Faye Wallet credit for flight delay) without customer filing.
• Faye Wallet: branded debit card; approved claim funds loaded in seconds; supports "Pay with Faye" (pay out-of-pocket replacement).
• Modular coverage including trip cancellation, interruption, delay, medical, baggage, COVID-19, rental car, pet care, adventure sports, CFAR, vacation rental damage.
• 1.5 insured travelers per purchase; family plan roadmap expected to increase this.

• U.S. travel insurance market CAGR: >10% per year.
• Current U.S. market size: $REDACTED.
• U.S. market potential (fully penetrated): $REDACTED.
• Market penetration: <15% currently - framed as the core unlock.
• Source cited: US Travel Insurance Association.
• Additional growth vectors: international expansion, post-booking travel services, embedded financial products.
• Competitive context: Home insurtech industry CAGR ~4.5%; auto ~1.6%; travel >10% - best growth profile of any insurtech vertical.

• Primary revenue: net premium (take rate) on GWP - MGA retains a share of gross written premium; exact take rate redacted.
• Secondary / future revenue: Faye Wallet interchange, "Pay with Faye" float/fee, embedded financial products.
• Channels (per GTM slide 12):
• Direct / organic (brand-driven)
• Embedded (B2B2C partnerships - e.g. TravelPerk shown in product mockup)
• Travel agency distribution
• Brand partnerships
• No per-policy premium price disclosed in deck.
• Average purchase value (30-day avg.) disclosed as $A.
• Profitability metric: for every $1 spent on partner commissions and ads, earns $redacted in net revenue - improving from Apr '22 to Dec '22, trending above 2x by Dec.

• Available in 48 states within <1 year of launch.
• $XM in GWP in first 9 months (exact figure redacted).
• $YM in net revenue in first 9 months (exact figure redacted).
• Monthly GWP growth: bar chart Apr–Dec '22, strong upward trajectory; Dec bar visually ~5–8x April bar - exact values redacted.
• Purchases and insured travelers (line chart, Apr–Dec '22): both series growing steeply; by Dec reaching the high-hundreds to ~2,000 range (y-axis labeled in thousands, chart shows 0–2,000 range; Purchases line approaches ~750–800; Insured Travelers line approaches ~1,500–2,000 by Dec).
• 1.5 insured travelers per purchase.
• Returning customer revenue growing month-over-month Jun '22 – Feb '23 (projected).
• 94% of customers say they will buy next coverage with Faye.
• Trustpilot score 4.7 (vs. competitors at 3.9 and 1.4).
• Fodor's "must-download travel app 2022".
• 4.7/5 stars on Trustpilot; multiple positive customer quotes.
• Press coverage: USA Today, Forbes, Travel + Leisure, Washington Post, TechCrunch, BuzzFeed, WSJ, Yahoo Finance, Business Insider, Money.
• 31 team members worldwide at deck date.

• Take rate (Rev/GWP): redacted.
• Loss ratio: redacted.
• Product penetration %: redacted.
• Payback period: redacted.
• Nature of risk: short term, low-to-medium severity - structurally favorable vs. home/auto.
• ROI per marketing dollar: improving trend Apr–Dec '22; by Dec '22 the net revenue per $1 of commissions + ads is trending above 2.0x (chart y-axis shows 0.5–2.5 range; Dec endpoint appears ~2.0–2.1x).
• Path to profitability: redacted label in comparison matrix (favorable framing implied vs. "Unproven" for home/auto insurtechs).

• Traditional incumbents (Allianz, Generali, AIG, AXA): legacy systems, no consumer brand, distributor-dependent, crippling commission structure.
• Distributors (Amex, Travel Leaders, United, Expedia): own the customer, bare-bone coverage, no claims ownership.
• Innovators: PassportCard (Israel), Pattern (parametric), Battleface (unbundling), Hopper (fintech ancillaries).
• Moat framing: Faye = only player with consumer brand + customer ownership + proactive/data-driven approach + holistic care + mobile-first.
• Key differentiators vs. all: retention-first design (94% repurchase intent), Faye Wallet lock-in, full-stack MGA (no margin leakage to third-party claims handlers).

• Co-founders: Elad Schaffer (CEO), Daniel Green (CTO).
• Key hires from: Lemonade, K Health, Guesty, PassportCard, Bob, Allianz, Via.
• Investors: Viola Ventures, F2.
• Advisory board: Yoel Amir (former CEO PassportCard), Mike Nelson (former Travel CEO Allianz), Rick Ensign (former VP Sales AIG).
• Round: Series A.
• Raise size: $10M.
• Runway: 24–30 months.
• Budget breakdown: redacted (2-year budget slide fully redacted).
• Use of funds / milestones implied: hundreds of thousands of customers (exact redacted); repeat customer rate target X% (redacted); expand to 50 states; ROI improvement per purchase; launch family plan; corporate plan; Pay with Faye; redacted tech capability.

• Archetype + why: Insurance P&L / MGA operating model - specifically a GWP → net premium → combined ratio model. Faye is a full-stack MGA, so the right structure is: GWP (policies × avg. premium) → ceded premium to reinsurer → net earned premium → claims (loss ratio × NEP) → MGA expenses (commissions, tech, ops, marketing) → operating income. This mirrors how MGA/insurtech investors (and reinsurance partners) evaluate the business. A pure SaaS ARR model would be wrong; this is an insurance underwriting P&L with a fintech revenue layer on top.

• Forecast horizon & granularity:
• Monthly for Year 1–2 (matches the 24–30 month runway window).
• Quarterly for Years 3–5.
• Cohort-level retention model to capture the repeat-purchase flywheel (critical given 94% repurchase intent claim).

• Key drivers & assumptions:

*Volume / top-line*

• Monthly policy purchases: growing steeply Apr–Dec '22; starting point for model ~750–800/month at Dec '22 run-rate (estimated from chart; exact figure redacted). 8–12% MoM growth tapering to 4–6% by Year 2 as base grows.
• Avg. travelers per policy: 1.5. rises to 1.8–2.0 with family plan launch.
• Average premium per policy: $A (redacted). ~$150–$250/policy typical for US trip insurance; use $180 as base until confirmed.
• GWP = Purchases × Avg. premium.

*Insurance economics*

• Cession rate (% GWP ceded to reinsurer/fronting carrier): ~75–85% typical for MGA retaining ~15–25% as take rate; use 80% cession / 20% net as base - flag for confirmation.
• Take rate (net revenue / GWP): redacted; 20% base - must be confirmed.
• Loss ratio (claims / net earned premium): redacted - favorable framing vs. home/auto; 55–65% travel insurance industry norm; use 60% base.
• Expense ratio (operating expenses / NEP): 35–45% for early-stage MGA; use 40%.
• Combined ratio = loss ratio + expense ratio; target <100% for underwriting profitability.

*Marketing & CAC*

• Marketing ROI: improving to ~2.0–2.1x net revenue per $1 spent by Dec '22.
• CAC: $40–$80/policy (travel insurance typical DTC); exact not in deck.
• Returning customer revenue: growing trend shown; model separately as a cohort with near-zero re-acquisition cost (94% repurchase intent).

*Faye Wallet / ancillary*

• Wallet interchange revenue modeled as a small % of paid claims (e.g. 1–2% of claims paid out via Wallet); minor in Year 1–2, growing in Year 3+.

*Headcount & opex*

• 31 employees at deck date; $10M raise for 24–30 months implies ~$3–4M/year burn on people + infra, $1–2M on marketing, $1–2M on other.

• Scenarios (Base / Bull / Bear - which variables flex):
• Base: 10% MoM purchase growth, 60% loss ratio, 20% take rate, family plan launches Month 18.
• Bull: 15% MoM growth, 55% loss ratio (better claims management), embedded B2B2C channel adds 30% volume uplift by Year 2.
• Bear: 6% MoM growth, 68% loss ratio (adverse claims), marketing ROI regresses, family plan delayed to Year 3.

• Required sheets / outputs:

1. Assumptions - all toggleable drivers in one place.
2. Policy volume build - monthly purchases, travelers, premium per policy → GWP.
3. Insurance P&L - GWP → net earned premium → loss ratio → expense ratio → underwriting income.
4. MGA revenue & cost - take rate revenue, CAC, marketing spend, headcount.
5. Cohort retention model - repeat purchase curves; returning customer revenue contribution.
6. Faye Wallet / ancillary - incremental revenue layer.
7. Cash flow & runway - monthly burn vs. cash; when does $10M raise run out across scenarios.
8. Summary KPIs - GWP, Net Revenue, Loss Ratio, Combined Ratio, CAC, Payback Period, Monthly Active Travelers.
9. Scenario toggle - Base / Bull / Bear switcher.