# Faye Financial Model Consumer travel insurance MGA delivering a mobile-first, proactive, full-stack product with claims authority and instant digital payments. - Canonical: https://finamodel.com/startups/faye - Excel download: https://finamodel.com/startup-models/faye.xlsx - Category: Crypto/Web3 - Model type: Insurance GWP - Funding round: Series A - Funding: $10M - Founded: 2023 - Geography: USA (48 states at deck date; targeting 50 states post-raise) [DECK slide 2, 17]; international expansion flagged as additional growth opportunity [DECK slide 5]. - Customer: B2C ## About the company Faye is a mobile-first travel-insurance MGA that controls product design, distribution, claims, and payments. Customers can buy a policy in about 60 seconds, receive proactive flight or security alerts, and obtain automatic micro-claim payments through Faye Wallet, a branded debit-card experience. Available in 48 states within its first year, Faye reported steep growth in purchases and insured travellers, 1.5 travellers per purchase, a 4.7 Trustpilot score, and 94% stated repurchase intent. Its $10 million Series A was intended to extend runway for 24–30 months and support a 50-state rollout. Build a monthly insurance P&L: policy purchases times average premium produce GWP, then cession to reinsurers, net earned premium, claims, commissions, technology, and marketing determine income. Model returning cohorts separately, and keep Wallet interchange as an ancillary line. Growth, loss ratio, take rate, marketing ROI, and embedded-partner volume should drive scenarios. ## What's included - 5-year monthly revenue build with stage-appropriate growth assumptions - Full P&L, headcount plan, and operating-expense schedule - Cash-flow statement, runway, and burn-rate tracking - Valuation via exit multiple with a DCF cross-check - Returns analysis with MOIC and IRR - Unit economics including CAC, LTV, payback, and cohort retention ## Product & value proposition - 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. ## Market - 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. ## Revenue model - 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. ## Traction & metrics - 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. ## Unit economics - 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). ## Competition / moat - 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). ## Team & funding ask / use of funds - 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. --- ## Recommended financial model - **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. ## Frequently asked questions ### Is the Faye financial model free? Yes. The Faye model is a free Excel download with live formulas. ### Can I change the assumptions? Yes. The workbook is editable and its live formulas recalculate when assumptions change.