The insurance industry across the world is on a high note. An average insurance penetration worldwide was around 7.2% in 2019, as per a report, but despite the Covid-19, it looks set to increase in the coming years. This could be the reason why insurtech companies are looking to disrupt the market by developing digital insurance platforms with insurance companies and suppliers.
In a recent development, German digital insurance company, Getsafe, has raised $30M (approx €24.7M) in its Series B round of funding led by Swiss Re’s digital platform iptiQ. This brings Getsafe’s total funding to $53M (approx €43.7M), to date. Existing investors, including Earlybird, CommerzVentures, btov Partners, and Capnamic Ventures, also participated in this round.
Use of the funds
Explaining how the funds will be utilised, Christian Wiens, founder, and CEO of Getsafe says, “The latest funding will allow us to significantly accelerate our growth, to consolidate our position as market leader among millennials in Germany, and to expand into other European markets.”
Besides, Getsafe states that it intends to extend its funding with a second tranche to be closed ahead of the receipt of its own insurance license, scheduled for the first half of 2021.
Founded in 2014 by Christian Wiens and Marius Blaesing, Getsafe is a digital insurance company that helps people “cover themselves and their universe simply from their smartphone.”
Getsafe claims to use technology and machine learning to create an entirely new insurance experience. Through the Getsafe app, customers can take out insurance, view, and change any of their personal or insurance details at any time. The platform has also developed a claims chatbot, Carla, that’s available 24 hours a day to answer questions and report claims; empowering customers to claim or change their coverage in real-time.
The company offers digital insurance products in all lines of business, including property, health, and life.
In the future, Getsafe wants to deliver products and services to customers even faster. Therefore, the company applied for a property and casualty insurance license from the Federal Financial Supervisory Authority (BaFin) earlier this year.
“We want to inspire and positively surprise people with a digital customer experience. What we have seen so far in terms of innovation in the insurance market is just the tip of the iceberg”, says Wiens.
Growth and development
In past one year, Getsafe has entered the British market, increased its number of customers to more than 150,000, and now employs over 120 people.
Christian Wiens explains, “In the middle of one of the biggest economic crises in history, we have undergone rapid development and established ourselves as an insurance company for consumers with a preference for digital channels. However, we are still at the beginning of our journey and have plenty to do to make insurance more digital throughout Europe.”
Earlier in November, Getsafe and iptiQ jointly launched a smartphone-based car insurance product in Germany. Now, users can purchase insurance with the Getsafe app, file a claim, and manage their policy in real-time. The company explains that this technology-driven approach lays the foundation for the future, wherein anonymous smartphone data from millions of people can help analyse and detect dangerous driving behaviour and better prevent accidents at an early stage.
Getsafe’s strategy to grow with their young customer base is paying off as already 30% of revenues are generated by customers buying additional policies with the company.
Christian Wiens says in a press release, “Over the last two years, we have shown that our product meets a core need for the young, tech-savvy generation. With our insurance delivered through your smartphone, we are developing a product that fits perfectly with the living and communication habits of this generation.”
In June 2019, the German startup had raised €15M in its Series A round. The round was led by Earlybird along with participation from CommerzVentures and other existing investors. The company also won the Fintech Germany Award as outstanding German Insurtech, in September this year.