Banks, venture capital funds and large companies are all still keen on putting cash into insurtech companies and who can blame them? It’s the future. With High Street retailing and hospitality/events pretty much stalled, there are still pockets of economic growth, mainly boosted by public sector regulations and funding.
One example is electric vehicles, which offers a huge opportunity to brokers and insurers. Then there’s private, mainly virtual healthcare, as those with well paid jobs seek to avoid the failing national healthcare systems that are obliged, or choose to, focus on Covid-19.
Another is insurtech, which offers excellent growth prospects in 2021. Insurance is going to be more automated, personalised to the consumer’s needs, and on/off, PAYG flexible, as the gig economy becomes the foundation of all online product delivery and distribution. Not just physical delivery, but freelance SEO, marketing, micro payment by apps, accounting and compliance, influencer Instagram and TikTokking, upcycling of pre-owned stuff and more `product miles’ related activities. These aren’t 9-5.30 jobs, all that is becoming history; goodbye office, hello home studio.
As people become time poor, they will demand that insurance isn’t a chore that requires 2 hours searching on comparison sites, inputting their data three times over, then a callback or two. Nor will they be convinced that an annual `buy and forget’ policy is necessarily the best option. That’s why investment into insurtech keeps happening, Covid has accelerated the process.
Here’s news from GetSafe;
Digital insurance company Getsafe closed a $30 million (USD) Series B funding. Swiss Re’s digital platform iptiQ led the round. Existing investors, including Earlybird, CommerzVentures, btov Partners and Capnamic Ventures, also participated. Getsafe now has received a total of $53 million (USD) from investors, making it one of the best-financed European insurtechs. The company plans to extend its funding with a second tranche to be closed ahead of the receipt of
the company’s own insurance licence, scheduled for the first half of 2021.
“We are thrilled to have iptiQ as our new lead investor and partner. Together with them and our existing investors, we want to build on our position as the leading insurer for a new generation of customers. 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,” explains Christian Wiens, founder and CEO of Getsafe.
The new partnership between Getsafe and iptiQ already came to fruition last month: Together, they launched the first digital car insurance optimised for smartphones in Germany. With just a few clicks, users can purchase insurance with the Getsafe app, file a claim, and manage their policy in real time. This technology-driven approach lays the foundation for the future, whereby anonymous smartphone data from millions of people can help analyze and detect dangerous driving behaviour and better prevent accidents at an early stage.
“Getsafe has established itself as a very promising insurtech brand, and we are pleased to lead this funding round,” says Andreas Schertzinger, CEO at iptiQ EMEA P&C. “As their partner, we will support future growth by combining iptiQ’s digital platform and insurance expertise with their mobile-first distribution model. Together, we will develop digital insurance products that are appealing, relevant and affordable for their growing customer base.”
To offer customers comprehensive protection, Getsafe uses its self-developed platform. This platform enables Getsafe to offer products for different life phases and markets under one strong brand, while at the same time working with different insurers or reinsurers.
In the future, Getsafe wants to deliver products and services to customers even faster. Therefore, the company applied for a property and casualty insurance licence 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 Christian Wiens (pictured).
In the last twelve months, 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.”