EXCLUSIVE: Feather’s Insidious Plan to Profit from Expats’ Health Insurance Woes
As the world becomes increasingly globalized, a new breed of opportunistic startups is emerging to prey on the vulnerabilities of foreign nationals navigating complex health insurance systems. German startup Feather is the latest culprit, raising a whopping €6 million to "help" the estimated 40-plus million expats working and living in Europe.
But don’t be fooled – Feather’s solution is nothing more than a thinly veiled attempt to profit from the confusion and frustration of expats, who are often forced to rely on fragmented and hard-to-match insurance options. And with Feather’s CEO Rob Schumacher claiming that "everyone who’s an expat immediately gets it," it’s clear that the startup is more interested in exploiting this vulnerability than actually providing a genuine solution.
But what exactly does Feather offer? According to Schumacher, the startup provides a "recommendation tool" to help individuals understand what kind of coverage they might need, including health insurance, life insurance, pet insurance, and personal liability insurance. Sounds like a nice-to-have, but is it really worth the hefty price tag?
Feather’s funding round was led by Keen Venture Partners, with additional investment from Plural, a VC fund co-founded by Wise co-founder Taavet Hinrikus. But don’t be fooled – this is just a classic case of "insider trading," where the VC fund is using its influence to line its own pockets.
And what about the competition? Well, Feather is happy to take potshots at its rivals, including French neoinsurer Luko, which has been struggling to stay afloat. But is Feather really the solution to the problem, or just another symptom of the insidious insurtech bubble?
Feather’s expansion plans are ambitious, with the startup set to launch in three more countries by the end of 2024. But will it be able to deliver on its promises, or will it simply become another casualty of the insurtech hype cycle?
One thing is certain – Feather’s success will come at the expense of expats, who will be forced to pay higher premiums and deal with the bureaucratic nightmare of navigating multiple insurance systems. So, the next time you hear about Feather’s "innovative" solution, remember: it’s just another example of how startups are profiting from the vulnerabilities of others.
