Envirotalks: An Interview with Faura

As part of Beaumont Bailey’s mission to connect founders, innovators and the key players that make up the fabric of our industry, our Technology Spotlight series highlights the successes of our incredible BETA members and our wider network. In this instalment we speak with Valkyrie Holmes, Co-Founder of Faura, where we discuss sustainable services, solutions, and technology within the realms of real estate and the built environment.

Tell me about Faura, its origin story and your role within that…

Initially, my career trajectory led me through traditional data science roles within space technology companies. I had the privilege to collaborate with NASA’s satellite imaging team at the SEES Institute and contributed to operations at SpaceX on Falcon Avi projects.

My journey took an unexpected turn when I secured a grant from the 776 Foundation to delve into sustainability initiatives. This grant, amounting to $100,000 over two years, allowed me to focus full-time on impactful work, despite being only 19 at the time. Inspired by this support, I embarked on projects like Project Firefly, aimed at leveraging drone technology to equip frontline firefighters with vital information to mitigate risks effectively.

While exploring various avenues, I recognised a significant gap in knowledge between homeowners and legacy stakeholders concerning property risk mitigation. Despite the substantial returns on investment—wherein every dollar spent on mitigation yields approximately $11 in avoided losses—homeowners often fail to perceive the long-term benefits due to the intricate involvement of insurers, real estate agents, and financial institutions.

This realisation led to the inception of Faura. We identified a pressing need within the insurance industry, particularly in high-risk areas, to bridge this gap and provide homeowners with tangible insights into risk reduction. Leveraging our expertise, we not only pinpoint areas susceptible to natural disasters but also identify resilient properties, thus empowering homeowners to make informed decisions to safeguard their investments.

Delving into the technology in a little more detail, what problem does Faura solve?

In terms of the pain points we’re addressing, there are several for homeowners. One significant issue is the lack of tangible value derived from existing certification processes related to property safety from wildfires or other natural disasters. Homeowners can invest in inspections and obtain certificates indicating their property’s safety measures, but these certificates often don’t translate into tangible benefits. We aim to change that by integrating directly with insurance policies. As part of their coverage, homeowners receive an inspection from us where we assess their property’s resilience. This analysis informs their insurance premium, rewarding them for proactive risk reduction measures. Over time, we’re witnessing a trend towards hyper-personalised insurance policies tailored to individual risk mitigation efforts.

Traditional insurance inspections often lack educational components, leaving homeowners unaware of their property risks and coverage details. Our digital self-assessment tool addresses this gap by guiding homeowners through the assessment process, providing insights into the rationale behind each question, and offering actionable recommendations aligned with their budget and timeline.

Our tool utilises predictive analytics based on historical disaster data to assess property resilience across various factors such as roof integrity, foundation stability, siding durability, and vegetation management for wildfire-prone areas. Additionally, we consider factors like air and water leakage for flood and hurricane risk assessments.

From an environmental standpoint, our solution adds value to insurance companies by enhancing their product offering and customer experience. It fosters greater customer engagement and loyalty as homeowners gain a better understanding of their risks and insurance needs. Insurance companies benefit from insights into which properties are best protected and can devise strategies to incentivise risk reduction, such as embedded insurance programs for resilient neighbourhoods.

Ultimately, our goal is to empower homeowners with the information they need to make informed decisions, enhance their property’s protection, and deliver a more personalised insurance experience.

What support have you received and how do you anticipate this helping your growth?

Regarding our participation in Metaprop’s accelerator program, we have successfully raised our pre-seed funding, currently standing at approximately half a million dollars. One of the most commendable aspects of Metaprop is the palpable atmosphere of support they provide from the outset. Their team exudes not only expertise but also genuine goodwill, instilling in us a deep sense of motivation to excel and deliver results that reflect positively on their mentorship.

Metaprop’s assistance has proven invaluable, encompassing introductions to key industry figures, guidance on refining our pitch, structuring pipelines, and navigating the complex landscape of the PropTech sector. Their mentorship has provided us with a much-needed framework and direction, fostering a level of organisation crucial for startup ventures.

In addition to our collaboration with Metaprop, we are actively engaged in other industry programs and networks. Transitioning from a background outside of insurance to a pivotal role within the industry presented initial challenges, particularly in establishing crucial relationships. However, leveraging platforms like LinkedIn and participating in industry events has allowed us to rapidly expand our network. Membership in groups such as the intersection between InsurTech and Big Data, as well as the InnSure association, has proven instrumental in securing our initial client base.

Trust is the cornerstone of the insurance sector, and personal connections are paramount. Participation in these networks not only facilitates professional interaction but also fosters trust, laying a solid foundation for our growth and success within the industry.

Are there any specific industries or companies Faura is particularly interested in partnering with?

In terms of potential collaborations and partnerships, our focus lies primarily on companies operating in coastal regions with high vulnerability to natural disasters, particularly hurricanes and wildfires. This naturally includes regions such as California, Texas, and Florida, where the impact of such disasters is most pronounced.

If I were to name specific companies, notable mentions would include the California Fair Plan and Citizens Insurance. Citizens Insurance serves as the insurer of last resort for Florida residents, given the challenges associated with obtaining affordable insurance in the state. Similarly, the California FAIR Plan plays a significant role in providing coverage for high-risk properties. These companies face substantial challenges due to the overwhelming demand for policies and the need to streamline processes.

Our interest in collaborating with such entities lies in leveraging our expertise to enhance resilience and risk reduction strategies. We aim to support initiatives that incentivise homeowners to mitigate risks effectively, ultimately leading to reduced premiums. While these companies may already offer certain discounts for risk mitigation measures, there is potential to streamline data collection processes and optimise risk assessment methodologies.

Additionally, HCI Group, a conglomerate encompassing various insurance subsidiaries, presents another avenue for collaboration. Companies like TypTap, an insurtech firm focusing on policies from insurers of last resort like Citizens, offer innovative solutions that align with our mission of empowering homeowners with actionable insights.

Operating within the insurtech space allows us to forge partnerships that not only benefit homeowners but also contribute to the overall resilience of communities. Our ultimate goal is to equip individuals with the information they need to make informed decisions while incentivising proactive risk reduction measures.

In summary, collaborations with entities such as Citizens Insurance, California FAIR Plan, and HCI Group represent significant opportunities to drive positive change in the insurance landscape, aligning with our mission of enhancing resilience and reducing risk.

How have you seen this industry change over the years and where do you predict it is heading?

The industry has seen notable shifts, particularly with advancements in image recognition technology. We’re increasingly focusing on understanding materials, such as those used in house siding or roofing, by embedding this capability directly into cameras. This streamlines our process of flagging and analysing data, aligning it with responses to our assessment questions. Currently, we’ve integrated some level of image recognition into our tool, and we anticipate this aspect will continue to evolve.

In the broader scope of artificial intelligence (AI), its application is pivotal for enhancing personalisation within the insurance industry. Insurance relies heavily on data analysis, and AI enables us to predict trends and gather information swiftly, ultimately enhancing efficiency and customer service. We’ve witnessed AI’s integration into customer service operations, with AI agents guiding clients through various processes, significantly reducing processing times. However, there’s a balance to be struck between improving customer experience and simply boosting operational efficiency for insurance companies.

As the industry continues to adopt AI technologies, we anticipate further exploration into how AI can truly enhance the customer experience. AI has experienced its share of hype cycles, but its trajectory remains promising. The continuous improvement in image recognition technology is particularly exciting, and we strive to leverage these advancements to set new standards within the industry.

If you would like to discuss any of the topics raised in this piece or if you need support with your leadership resourcing strategy, please get in touch with Emma Callahan on emma.callahan@beaumontbailey.com.