Episode #169
Oct 30, 2025
How Insurance is Transforming the Hospitality Industry
with Andrew Bate from VelarisRe
SPONSORED BY
Andrew Bate founder and former CEO of Safely and founder of the startup Velaris Re, shares his perspective on how insurance is evolving to better protect the modern hospitality industry. From emerging technologies to shifting guest expectations, Andrew offers insights on building trust, managing risk, and creating safer travel experiences.
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The hospitality industry has undergone seismic shifts in the past decade—and so has the insurance landscape that supports it. In Episode 169 of the InsurTech Geek Podcast, we sat down with Andrew Bate, founder of Safely and current CEO of Velaris, to unpack how technology, behavior, and distribution are shaping a new era for hospitality insurance.
With hosts James Benham and Rob Galbraith, Andrew shared his entrepreneurial journey, the realities of insuring short-term rentals, and his bold new vision for making insurance smarter and more accessible for small businesses.
The Origin of Safely: Solving Trust and Risk in Vacation Rentals
Andrew’s foray into insurance was unconventional. While working in McKinsey’s travel practice, he encountered a professor who owned a second home but never rented it out—despite the financial opportunity. The reason? Fear of property damage and the discomfort of strangers in a personal space.
This sparked a realization: homeowners were asset managers in denial. In aviation or hotels, unused assets are losses. So why should homes be any different?
From that idea, Safely was born—a company that answers two essential questions for property owners:
- Who’s staying in my house?
Safely provides guest screening, checking for identity verification, felonies, and even a contributory database of “bad guests.” - What happens when something goes wrong?
A unique commercial insurance product covers homeowner liability, property manager liability, and guest-caused damages.
Embedded Before Embedded Was Cool
A core innovation at Safely was its seamless technology integration with property management systems. Andrew quickly realized spreadsheets weren’t going to cut it—property managers wouldn’t send them. So, they built deep integrations with platforms like Escapia (now part of Expedia), enabling every reservation to automatically generate a tailored insurance policy.
“We were building embedded insurance before it was called that.” – Andrew Bate
This form of on-demand, episodic insurance revolutionized short-term rental risk coverage. Policies would only activate when a guest stayed, aligning coverage with actual exposure.
What COVID Did for Travel—and for Safely
While the pandemic devastated many sectors, it ironically boosted short-term rentals. With hotels cutting amenities and families seeking space for remote work and school, home rentals surged.
Safely was perfectly positioned. Property managers, flush with business and optimism, were ready to invest in tools like Safely’s tech-driven insurance solutions.
However, this boom was not without limits. Andrew notes that the post-COVID glow is dimming. Occupancy rates are softening, last-minute bookings are up, and discounts are back.
Still, compared to 2019, the industry remains strong.
From Safely to Velaris: Thinking Bigger
After years of success with Safely, Andrew wanted to expand the impact. Enter Velaris, his new venture, focused on providing industry-specialized insurance products for small hospitality businesses like vacation rental companies and boutique hotels.
Why the shift?
“There needs to be industry specialization, not regional specialization.” – Andrew Bate
Most small businesses don’t spend enough on insurance to attract large brokers. They’re often left with generic policies from agents unfamiliar with their specific risks—like golf carts, shared pools, or copyright issues from guest photography.
Velaris aims to solve that by creating specialized policies, leveraging AI to:
- Compare coverages faster
- Streamline quotes
- Develop new products with speed and accuracy
It’s insurance designed like Costco—with both “house brand” and third-party options, giving businesses flexibility and confidence.
The Numbers Behind the Niche
The insurance model at Safely proved remarkably sound:
- Short-tail risk: Once a guest checks out, liability ends.
- Low severity: Most claims involve hundreds of dollars, not thousands.
- No catastrophes: Acts of nature aren’t covered, minimizing correlated losses.
- Flexible pricing: Policy terms can be adjusted on a per-reservation basis.
One of the more shocking statistics? Safely paid out over $1 million in soiled sheet claims—proof that vacation behavior requires very real insurance.
“Insurance is the study of human nature… and Mother Earth’s nature.” – James Benham
Looking Ahead: AI, Claims, and Distribution
Andrew is bullish on the power of AI to change how policies are designed and claims are handled.
In the short term, he sees automation as a support tool:
- AI-assisted claims adjusters: More productive, less stressed, better decisions.
- Faster product development: Try new ideas without waiting months for actuarial support.
In the long term? He sees embedded insurance as the future—not just for hospitality, but everywhere.
“There’s risk everywhere. We don’t insure it because it’s too hard to sell. But if we can distribute better, we can cover more.” – Andrew Bate
Final Thoughts
This episode is a goldmine for anyone interested in:
✅ Practical InsurTech applications
✅ Embedding insurance into real-world processes
✅ Evolving how SMBs interact with coverage
✅ AI in underwriting and claims
✅ The post-pandemic future of hospitality
Andrew Bate is proving that bold thinking and careful execution can turn even the messiest of claims into opportunity.
You Might Also Find Interesting:
- “5 Signs You’ve Outgrown Legacy Claims Software”
Legacy claims software once served the industry well. But today, it can be a silent bottleneck — slowing down adjusters, putting compliance at risk, and leaving valuable insights untapped. - “Bridge the Gap: How Policy Administration Software + Claims Automation Tools Super-Charge Insurance Claims Management”
If your policy data still lives on one system while your adjusters struggle on another, you’re paying a hidden ‘silo tax’ every single day.
- “5 Signs You’ve Outgrown Legacy Claims Software”
Related ITG Episode:
- Episode 157 – The Intrapreneur’s Playbook: Disrupting Insurance from Within
Bobbie Collies from Coterie Insurance shares her expertise on intrapreneurship and disrupting insurance from within.