German digital insurtech startup, Getsafe, has made a significant move by acquiring the German portfolio of Luko, a French insurtech startup. This acquisition comes as Luko recently agreed to be acquired by UK-based insurer Admiral Group, in a deal that excluded its German and Spanish operations. The acquisition of Luko Germany is an important milestone in Getsafe’s history.
Fuels Getsafe’s expansion
The takeover revealed today, which Getsafe asserts was granted approval by BaFin in the latter part of the previous month, is primarily driven by Getsafe’s growth objectives rather than licensing considerations. Following the acquisition of Luko’s German portfolio, comprising 50,000 policies encompassing liability, pet, and home contents insurance, Getsafe’s customer base in Europe has swelled to 550,000, marking a significant increase from the 400,000 customers it had prior to its expansion into France in January of this year.
The specific details of the agreement were not revealed, leaving us in the dark about the extent to which it will assist Luko in addressing its financial obligations. Nonetheless, this deal provides a fresh residence for a German customer base that Admiral had no intention of acquiring.
Integrates with Getsafe’s strategies
According to Christian Wiens, CEO and founder of Getsafe, the technical integration was as smooth as introducing a new product, thanks to their adaptable and scalable infrastructure. Unlike traditional insurers, Getsafe adopts a direct-to-customer approach, with a primary focus on a younger demographic and a mobile-centric strategy. Their app boasts a monthly usage rate of 35%, with 10% of users engaging in claims, while the remaining 90% explore various insurance options and expand their knowledge about protection.
In contrast, Luko’s single-product strategy, primarily centered on home insurance, limited its capacity to offer additional products to its customer base. Getsafe’s multi-product strategy has proven highly successful, resulting in increased revenue and improved operational profitability within its core markets.
Better insurance experience for all
Gersafe was founded by Christian Wiens and Marius Simon in 2018. It is a digital insurance company that creates a better insurance experience for everyone. By replacing complexity and manual paperwork with smart bots and automation, customers can file claims or change their coverage in real-time with just a few clicks. Eventually, Getsafe makes insurance simple, fair and accessible.
“Traditional insurance is broken for digitally savvy customers. They would never step into a broker’s office. We aim to become the go-to platform for 100 million young Europeans who will spend €300 billion on insurance in the next decade,” said Christian Wiens, CEO and founder of Getsafe. “By eliminating intermediaries such as brokers and agents, we achieve much higher customer satisfaction scores than the industry average. Additionally, our direct-to-consumer business runs with higher margins and is already operating profitably in our core markets.”