AI Insurtech Ominimo Secures First Investment at $220M Valuation

Attracting Engineering Talent to an Insurance Startup

Securing skilled engineers for a startup operating in a traditionally unglamorous sector presents a unique challenge, particularly when competing with well-funded, high-profile companies. Ominimo, a Polish insurance startup, has addressed this by offering competitive compensation and, crucially, empowering its engineers to fundamentally reshape industry practices.

Ominimo's Rapid Growth and Funding

Launched just 12 months ago with bootstrapped funding, Ominimo has developed a novel approach to risk assessment and pricing. The company reports achieving profitability and substantial growth, having already secured 300,000 policies in its initial market, Hungary. To support its continued expansion, Ominimo has secured its first external investment from Zurich Insurance Group.

Sources indicate that Zurich is investing €10 million (approximately $11 million) for a 5% equity stake, resulting in a company valuation of €200 million ($220 million). Both Ominimo and Zurich have confirmed this valuation, though they declined to comment on the specific investment amount.

A Contrasting Landscape

Ominimo’s funding round occurs amidst challenges faced by other European insurance startups, notably WeFox, which is currently restructuring and seeking lifeline financing. WeFox’s situation serves as a cautionary example, while simultaneously highlighting a clear market opportunity.

While already profitable, Ominimo maintains a focused approach. Currently, the startup operates solely in Hungary, offering car insurance to consumers. Future plans involve replicating this model across additional geographies and expanding into new insurance categories.

Expansion Plans and Strategic Partnership

The company intends to launch in over 10 new markets, beginning with Poland, Sweden, and the Netherlands. Zurich Insurance will act as the risk carrier, with Ominimo functioning as a managing general agent and broker. Initially, the focus will remain on automotive insurance, with plans to incorporate property insurance in the future.

Addressing Industry Challenges

Dusan Komar, Ominimo’s CEO and co-founder alongside Dennis Weinbender (Chief Pricing and Data Officer) and Laslo Horvath (CTO), identified key obstacles within the insurance industry during his time at McKinsey. These included inflexible legacy systems hindering innovation, slow corporate decision-making, and difficulties in attracting top talent.

“No brilliant software engineer or data scientist dreams of working for an insurance company,” Komar stated.

Traditional consulting approaches often involved building new products and then transferring the code to insurance clients. While partially effective, Komar found these solutions fell short of their full potential.

A New Approach to Insurance Technology

Inspired by fintech and other insurance startups, Komar and his co-founders decided to build a product as their own company. They leveraged APIs to integrate features and functionality from external providers, leading to the creation of Ominimo.

Data-Driven Risk Assessment

Ominimo utilizes AI-powered analytics to refine risk assessment. Traditional insurance companies typically rely on 5-6 key parameters (age, income, vehicle type, driving history, location) to determine pricing. Newer insurers may expand this to 10-15 parameters.

However, Ominimo incorporates less obvious, yet significant, variables. For example, accessing a vehicle database via the license plate reveals over 100 details, including dimensions and weight. “It’s interesting, for instance, to see that data shows a very strong correlation between the length of the car and the frequency of accidents during parking,” Komar explained.

Ominimo integrates these details, alongside population density and other factors, into its calculations.

Performance and Differentiation

While numerous startups claim to leverage AI in insurance, Komar emphasizes Ominimo’s demonstrable results. He asserts that Ominimo’s performance surpasses competitors like Lemonade, citing a lower loss ratio and a 7% market share in Hungary.

Many new insurance players prioritize user experience and modern interfaces, often lacking substantial innovation in their underlying technology.

“There is a difference between claiming to do data science in terms of risk assessment, and actually doing it,” Komar noted. He believes many competitors focus on aesthetics rather than fundamental improvements.

Attracting and Retaining Top Talent

Ominimo’s success in attracting talent stems from providing a stimulating work environment. “We have eight medalists from mathematics and physics Olympiads among our data science team,” Komar revealed. “These are really brilliant young minds who now, for the first time, get to deploy their full potential on a global scale. And this really shows in the KPIs that we see.”

Zurich Insurance's Investment Rationale

Zurich Insurance’s investment reflects its desire to access new customer segments and diversify its business.

“Growing our retail business profitably is a key ambition in Zurich’s 2025-2027 cycle. That is why I am delighted with DA Direkt’s distribution partnership with Ominimo, which will allow us to offer innovative motor insurance solutions and expand our retail customer base in Europe, beyond the markets in which Zurich is already present,” said Alison Martin, CEO of Europe, Middle East and Africa at Zurich Insurance Group, in a statement. “I am also pleased we are strengthening our relationship with a minority stake in Ominimo.”