Florian Graillot: On the Frontlines of Europe's InsurTech Disruption

As Florian Graillot's visage illuminates the screen, the crisp lines and cool tones of his office backdrop contrast with his warm demeanour and generous spirit. His features, projected across the expanse of the digital sphere, reveal an enthusiasm for technology that borders on reverence.

Florian, Co-Founder of astorya.vc, has dedicated the better part of his professional life to understanding and harnessing the transformative power of technology. A career spanning 15 years in tech startup investment testifies to this commitment.

His roots in the tech sphere go even deeper. An engineering graduate from Telecom ParisTech, his fascination with technology extends beyond the polished veneer of startups and venture capital. His eyes shine as he explains, "I'm really fond of technology. And I believe that technology is one answer to building a better future."

Florian's trajectory into tech investment didn't happen by chance. At Newfund, a Paris-based tech VC, he began to tap into the immense potential of technology as a transformative force. Later, at AXA Ventures, he focused on the budding InsurTech sector in Europe. Recalling this time, Florian's hand sweeps across the frame in a broad, sweeping gesture, "As an investor, it's always very nice to enter a new fund. The Fintech space was booming. There was no reason this would not happen in insurance as well."

Astute observation and strategic timing, it seems, were integral to Florian's success. He founded astorya.vc at a time when InsurTech was still a fledgling concept, barely registering as a buzzword. "InsurTech was not even a hashtag on social networks. So it was the very early days."

But what makes astorya.vc different? According to him, it’s the focus on the technology rather than just the team. He leans in slightly, the digital light casting an earnest glow on his face, "We try to be objective as well. The product says a lot about the technology. The only opportunity in insurance... is to have a differentiated technology."

When the conversation shifts to future trends, Florian's face lights up, reflecting his passion for what lies ahead. He describes how astorya.vc, armed with a custom-built scouting tool, tracks over 5,000 startups across Europe, identifying trends before they hit the mainstream. He notes, "We have a scouting tool with more than 5,000 startups across Europe. Just to give you a rationale, that's close to 30% more startups than any other database in Europe."

This ability to spot nascent trends and promising startups, even those flying under the radar, isn't just about finding the next lucrative investment opportunity. For Florian and his team at astorya.vc, it's about actively shaping the future of InsurTech.

For instance, he and his team were championing 'embedded insurance' years before it was a recognized trend. With a sense of vindication, Florian nods, "Even before the word embedded insurance existed. We wrote many pieces online saying, okay, look, third party players, e-commerce marketplaces will become a significant part of the insurance distribution."

And this bore fruit in the case of Weecover, an embedded InsurTech startup based in Spain—and one of Astorya’s investments. Florian's eyes sparkle with pride and enthusiasm as he speaks about their journey.

"They were able to develop a very nice tech but matching the requirements of insurance," he elaborates, emphasizing the firm's effective blend of technical skills and industry knowledge. "Their background was very consistent with the opportunity." The investment in Weecover, as he explains, showcases their key investment philosophy—capital effectiveness, and their ability to achieve more with less.

When asked about his vision for the future of InsurTech, Florian doesn’t hesitate. "I think we are at the end of what we could name InsurTech 1.0," he says decisively, leaning in slightly, "where a lot of companies were created around the distribution part of the value chain."

Florian unpacks the story of "InsurTech 1.0", highlighting how the challenge of raising money for direct-to-consumer distribution led to mergers between incumbents and digital distributors. He's aware of the changes happening around him, aware that the insurance value chain has much more to offer, particularly in claim management and underwriting.

However, it's when he talks about new risks—those not traditionally covered by insurance companies—that his enthusiasm seems to reach its peak. "The last challenge is what we call new risks," Florian explains, "The best example is weather damages related to climate change... the other example is cyber risk."

The discussion about new risks leads naturally into the topic of climate change, and he acknowledges its role as a pressing challenge for the insurance industry—and, of course, the world. He talks about a new wave of startups arising, focused on "climate tech" that tracks CO2 emissions, such as Claims Carbon, one of astorya.vc's investments.

Yet, Florian also acknowledges that tackling climate change isn't just about tracking emissions. It's about understanding the new risks that climate change presents to insurers. Here, Florian believes InsurTech can play a crucial role in equipping traditional insurance companies with the data and technology needed to understand and accurately price these new risks.

"We need to understand and price the risk to be able to carry that risk accordingly," he emphasizes. "In regard to climate change, there is no historical data. The damages are just accelerating. So the data that we have in the very recent past are more important than what was in the longer past."

This challenge of understanding new risks is where InsurTech truly shines, according to Florian. Startups, unencumbered by legacy systems and historical data, can bring in new datasets and fresh talent to help insurance companies tackle the climate change challenge.

"But again, I think that it's because they will team up together," he observes, linking the strengths of InsurTech startups and traditional insurance firms, "then they will succeed."

In Florian's eyes, the insurance industry isn't just about mitigating risks. It's about being at the forefront of the battle against climate change. His words are an affirmation, a rallying cry for an industry that has the potential to lead change. "Insurance companies probably need more than any other industry to tackle this climate change," he declares, "because they are the one paying for the damages. They have a huge incentive to fight climate change."

Florian acknowledges his early years in business with candor. "I started my very first company on the very first day of my career… I learned a lot from that first experiment." And this wisdom has informed his approach at astorya.vc: "Having an entrepreneurial background ourselves helps us understand the challenges, anticipate moves from entrepreneurs, and I think when things are tough, entrepreneurs probably go easier to us than pure financial investors because they know we've probably faced the same challenges," he adds, indicating a camaraderie built on shared experiences.

It's apparent that Florian sees himself and his partner, Jan, as entrepreneurs who are investing in other entrepreneurs—a fractal pattern he acknowledges with a nod and a slight smile. He credits their entrepreneurial background as instrumental in raising funds and gaining credibility in the InsurTech space. As he delves into the dynamics of being both an investor and a CEO, he articulates a strong conviction in the collaborative growth of the entire ecosystem.

Florian's genuine eagerness to guide others is palpable. As a mentor, he shares his insights from years of navigating the startup landscape, noting common pitfalls like overestimating the market's readiness and underestimating the challenges. Yet, he couples these cautionary tales with a resolute optimism, emphasizing the importance of resilience, agility, and speed.

"Every morning when you wake up, ask yourself how you can move faster," he shares, a nugget of advice handed to him by an early investor.

But Florian’s desire to help others doesn’t stop at mentoring. Boasting a LinkedIn following of 25,000 and 43,000 on Twitter, Florian highlights the crucial role of online visibility and engagement in the InsurTech sector. Recognizing this as a strategic shortcut in an industry that's gradually emerging from its infancy, Florian’s dedication to providing balanced insights and promoting thoughtful discourse reflects his approach as a VC. In his words, it's not about proving one's knowledge but about contributing to and learning from the collective discourse.

Florian's approach reaffirms the importance of looking beyond surface-level trends, encouraging a deep, nuanced understanding of the InsurTech sector and an engaging dialogue with others. Nuance seems valuable to him. As he glibly puts it, "not everything was good in 2021. Not everything sucks in 2023. The reality is obviously a bit in between."

His insights echo the ethos of his investment strategy—understanding the complex interplay of technology and insurance, recognizing potential, and most importantly, valuing balance. In his own words, "being active online is really key," a mantra that has not only shaped his success as a VC but also fostered a sense of community and shared understanding within the InsurTech sector.

The discussion encapsulates the evolving landscape of InsurTech, unearthing insights and perspectives that challenge the status quo. And as Florian's journey illustrates, it's not just about where you start but how you adapt, learn, and find balance along the way.

With this vision, Florian isn't just anticipating the future of InsurTech; he's laying down a challenge for the industry to step up, to innovate and evolve in the face of changing risks, and to drive the evolution of the insurance industry into its next chapter: InsurTech 2.0.

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Images courtesy of: Florian Graillot