Insurtech seems to lag behind its Fintech big brother in the era of fund-raising and growth. Unsurprisingly, insurance has been a very conservative and traditional industry that has a low-risk appetite. In the past few years, there are growing numbers of Insurtech starts that catch the attention of the venture capital industry, and the consumers alike. Let’s take a look at the most prominent Insurtech companies in Europe in 2020.
Lemonade (Germany and the Netherlands)
Lemonade did not start in Europe. The company was founded in 2015 by Daniel Schreiber and Shai Wininger and headquartered in New York City. However, with its launch in the second European market- the Netherlands this year- after the launch in Germany in 2019, it’s worthwhile to count Lemonade as one of the players in the European Insurtech market. Lemonade targets tech-savvy millennials who do not be bound to brand loyalty as seen in the traditional insurance industry.
As of 2019, Lemonade recorded a revenue of $67,5 million and employs more than 300 employees. Lemonade’s rise to one of the leading Insurtech companies in the world and the recent successful IPO, one of the best IPOs in 2020, would definitely make Lemonade the top Insurtech company to watch.
At the moment, Lemonade is active in three markets: the US, Germany, and the Netherlands. and offers renters and homeowners insurance only.
Ottonova: Insurtech app that makes “German health insurance simple”
Germany undoubtedly has one of the most developed insurance markets in the world. The variety of insurance products offered in this market can make any new consumer dizzy. Germany is also home to the Fortune 500’s insurers Allianz, and Munich Re, Talanx.
Naturally, Munich is home to Insurtech startups which host lots of Insurtech companies that have close links to the big insurance companies in the industry.
Three German Insurtech startups alone- wefox & ONE, Ottonova, and Friday Versicherung- raised 50% of the total funds raised by Insurtech companies in Europe in 2019.
Ottonova is one of them. Headquartered in Munich, and founded in 2015 by Frank Birzle, Roman Rittweger, Sebastian Scheerer, Ottonova is of the top Insurtech companies in Europe that raised €85 million in total, with the latest round in a series D in Nov 2019.
The insurtech company targets expats living in Germany with their fully-digital health insurance solutions. The startup envisions to make German health insurance simple. The complexities of the German health insurance system could give any expats nightmares, let alone those that do not speak German. Ottonova is backed by Debeka, Germany’s largest private health insurance. Ottonova app is available in English and targets English speaking young expats who are technology savvy. The solutions such as Ottonova could be good strategies for high-earning expats living in Germany who want cost-effective, simple, digital, expat-friendly health insurance solutions that save them money and sleepless nights.
Friday Versicherung (Germany)
As we may guess by the name, Friday Versicherung (insurance in German) is a German Insurtech based in Berlin and founded in 2017 by Christoph Samwer, Florian Eismann. Friday Verischering is the German subsidiary of Basler Versicherungen Luxemburg A.G. The German Insurtech company raised in total €114 million to build its digital car insurance company.
Bought By Many (UK)
Founded in 2012 in UK, Bought by Many is a pet insurance company that analyse anonymised search data to identify the problems with existing insurance offers. The British Insurtech company raised a mega funding round early this year that totals the funds raised up to date to €105 million. Bought by Many is currently offering its products only in the UK market.
Alan is a digital health insurance platform that offers insurance services by focusing on a price-quality ratio health plan. The company was founded in France in 2016, and raised a total of €125 million, with the recent round in Apr, 2020. Alan has covered more than 100,000 people, and is currently active in the French market. The company plans to roll out its products in multiple European countries in the coming years.