Reinsurance giant Munich Re has entered into a new partnership with Israeli / U.S.-based travel-focused startup, Roomer Travel (Roomer).
Roomer has developed a marketplace for reselling and booking non-refundable hotel rooms and, based on its experience the startup has identified that travelers need more flexibility.
Roomer Flex is the firm’s flagship solution, which, by leveraging artificial intelligence (AI) and machine learning, provides travelers with a way to change their travel plans without risking the entire booking value.
Roomer notes that Flex is based on a machine learning algorithm which evaluates and dynamically prices every single protection request from OTA partners in real-time, considering the reselling probability. Roomer states that by using an AI approach, it is able to identify and consider additional parameters that until today, would not have been accounted for when booking.
But despite the AI approach and use of unique machine learning, large, unexpected and unpredictable payouts, from things like natural catastrophe events, can still happen. In light of this, Roomer has partnered with Munich Re and under the agreement, the reinsurer has developed an insurance solution that protects Roomer against large, unexpected payouts.
According to Roomer, the insurance is underwritten by a primary insurance carrier of Munich Re, and enables the startup to scale up their operations globally, while at the same time focusing on their innovative tech and to further improve customer experience.
Head of Munich Re’s New Tech and IoT Underwriting, Andre Knoerchen, said: “The partnership between Roomer and Munich Re delivers a solution to one of the biggest challenges of the travel industry – cancellations.”
The co-founder and CEO of Roomer, Gon Ben-David, said: “We found at Munich Re an agile and open-minded team that understands our unique needs. I am convinced that now after giving flexibility to almost 150,000 travelers worldwide, this cooperation will enable Roomer to further expand its business globally.
“There are many more verticals within the travel industry that face similar unsolved challenges. We are excited to continue the partnership and to further explore opportunities to protect travelers and create value for the entire travel industry.”
