CURATED INSURTECH NEWS | What’s going on in D-A-CH region? – Q2 2019

It’s great that you are following my selection of InsurTech-News for the German speaking countries. And this edition, again, I have selected some interesting and potentially groundbreaking news and information from startups and incumbents in the insurance space from the past weeks. However, let’s start with FinTech!

FinTech continues to perform at a high pace

The Robo-Advisor Moneyfarm enters the German market. The Italian Wealthtech company, backed by Allianz, offers a digital wealth management solution based on a multi-asset approach. In contrast to their competitors, ETFs are not the only investment vehicles that are used¹.

The German prime example fintech N26 announced that despite having some issues and quarrels with German regulator (BaFin) the number of clients worldwide exploded². The 3.5 million customers seem to be just the beginning. Their plans to launch in the US in the coming weeks will ensure further growth.

New InsurTech Funding

The German insurance start-up Getsafe has completed a Series A funding with $17m³. The startup that targets millennial customers by providing an assortment of digital insurance products has announced ambitious growth plans. According to their own account, they already serve about 60.000 clients by only four service employees⁴. It is not that surprising that – given the huge potential of life insurance – Getsafe will also enter this insurance segment soon⁵.

New insurers gain traction

The new insurer Neodigital has announced another cooperation with a broker pool⁶. It is not a secret but a trend that new digital insurers are able to serve sales channels much better and faster than incumbents. Broker, broker pools and other sales companies have already discovered that they have to invest more money into digitization and partnerships.

Lemonade in Germany

The fast-growing US-InsurTech Lemonade starts business in its first European country. Consumers in Germany can now get liability insurance instantly, anytime, and from any device⁷. Lemonade enters the German market in cooperation with AXA via a reinsurance agreement. Not unlikely, that this move has a connection to the upcoming IPO where Lemonade aims for a valuation at $ 2 Billion⁸.

Another comparison platform?!

FinTech company builder FinLeap intends together with the Chinese insurance group Ping An to set up a comparison portal for financial products (including insurance products)⁹. Therefore, FinLeap is currently looking for 30 to 40 million euros for the venture with the project name Betterchange. FinLeap’s universe of companies includes currently a broker, an insurer, an asset manager and some more. It will be interesting to see which strategy and tactics they will follow in order to compete with the top dog Check24.

What’s next?

The new digital insurers and some InsurTechs continue to push further in traditional sales channels. It will be interesting to see what companies like WeFox (big funding) and Deutsche Familienversicherung (IPO) will do with the huge rain of money.

Seeing banking and insurance getting closer and closer (and if it is ultimately only for the benefit of the customer) more and more startups will deal with FinSurTech – the merger of FinTech and InsurTech.

It will be a hot, hot summer, stay curious!

Sources

¹ https://www.fnlondon.com/articles/allianz-backed-robo-advisor-moneyfarm-launches-in-germany-20190613

² https://www.crowdfundinsider.com/2019/06/148389-n26-now-offering-banking-services-to-3-5-million-customers-announces-u-s-launch-plans/

³ https://www.verdict.co.uk/life-insurance-international/news/getsafe-funding/

⁴ https://www.it-finanzmagazin.de/getsafe-cto-blaesing-interview-it-basics-90295/

⁵ https://www.versicherungsmagazin.de/rubriken/branche/ab-2020-die-digitale-lebensversicherung-auf-dem-schirm-2414633.html

⁶ https://www.cash-online.de/versicherungen/2019/neodigital-und-apella-arbeiten-kuenftig-zusammen/470032

⁷ https://www.businesswire.com/news/home/20190611005538/en/Lemonade-Launches-Europe  

⁸ https://www.crowdfundinsider.com/2019/06/148251-report-insurtech-lemonade-queues-up-initial-public-offering-at-2-billion-valuation/

⁹ https://www.gruenderszene.de/fintech/finleap-venture-betterchange